Bayer: Very successful start to 2014

BayerSales of the Bayer Group advanced by 2.8 percent in the first quarter of 2014 to EUR 10,555 million (Q1 2013: EUR 10,266 million). Adjusted for currency and portfolio effects (Fx & portfolio adj.), business expanded by 8.4 percent. EBIT rose by 18.4 percent to EUR 2,096 million (Q1 2013: EUR 1,771 million) after net special items of plus EUR 7 million (Q1 2013: minus EUR 45 million). EBIT before special items increased by 15.0 percent to EUR 2,089 million (Q1 2013: EUR 1,816 million). In spite of negative currency effects of some EUR 200 million or roughly 8 percent, EBITDA before special items improved by 11.6 percent to EUR 2,738 million (Q1 2013: EUR 2,453 million). Net income climbed by 22.7 percent to EUR 1,423 million (Q1 2013: EUR 1,160 million) and core earnings per share by 14.7 percent to EUR 1.95 (Q1 2013: EUR 1.70).

Gross cash flow in the first quarter of 2014 rose by 13.3 percent to EUR 2,048 million (Q1 2013: EUR 1,807 million) due to the improvement in EBITDA. Net cash flow, however, declined to EUR 163 million (Q1 2013: EUR 327 million) because more cash was tied up in working capital. Net financial debt rose from EUR 6.7 billion on December 31, 2013, to EUR 9.1 billion on March 31, 2014. This increase was driven by the acquisition of Algeta ASA, Norway.

HealthCare: recently launched pharmaceutical products post sales of some EUR 600 million

Sales of the HealthCare subgroup rose by 2.9 percent (Fx & portfolio adj. 8.9 percent) in the first quarter to EUR 4,572 million (Q1 2013: EUR 4,443 million). "This growth was driven by the pharmaceutical products we have launched recently," said Dekkers. Sales showed above-average development in the Emerging Markets.

The Pharmaceuticals business recorded strong growth compared to a weaker prior-year quarter, with sales rising by 14.9 percent (Fx & portfolio adj.) to EUR 2,782 million. This excellent performance was driven by the recently launched medicines Xarelto™, Eylea™, Stivarga™, Xofigo™ and Adempas™, which registered combined sales of EUR 598 million (Q1 2013: EUR 244 million) led by the anticoagulant Xarelto™, which is Bayer's best-selling pharmaceutical product. The eye medicine Eylea™ posted strong gains, and business with the cancer drugs Stivarga™ and Xofigo™ developed well. The pulmonary hypertension treatment Adempas™, launched in the United States in the fourth quarter of 2013, also contributed to the growth in sales.

Among the established best-selling products, the cancer drug Nexavar™ recorded sales gains in all regions, with currency-adjusted (Fx adj.) growth of 13.6 percent. Sales of Aspirin™ Cardio for preventing heart attacks rose by 19.2 percent (Fx adj.), largely thanks to increased demand in China. The decline in sales of the blood-clotting medicine Kogenate™ (Fx adj. minus 5.7 percent) was partly explained by the high sales level of the prior-year quarter. Sales of the multiple sclerosis drug Betaferon™/Betaseron™ receded by 21.5 percent (Fx adj.), mainly due to increased competition in the United States. Business with the YAZ™/Yasmin™/Yasminelle™ line of oral contraceptives was hampered chiefly by generic competition, with sales of these products down by 2.6 percent (Fx adj.).

Sales of the Consumer Health segment in the first quarter of 2014, at EUR 1,790 million, were flat with the prior-year period on a currency- and portfolio-adjusted basis. In Consumer Care, the skincare product Bepanthen™/Bepanthol™ and the dietary supplement Supradyn™ in particular registered growth (Fx adj. 21.9 percent and 15.0 percent, respectively). In the Medical Care Division, the U.S. Diabetes Care business continued to be held back by price declines. Sales of the Contour™ line of blood glucose meters receded by 11.5 percent (Fx adj.). Sales of contrast agents and medical equipment in the Radiology & Interventional business were slightly down on a currency- and portfolio-adjusted basis. On the other hand, business with animal health products developed favorably, with growth particularly for the Advantage™ family of flea, tick and worm control products (Fx adj. plus 10.8 percent).

Despite significant negative currency effects of some EUR 130 million or approximately 11 percent, EBITDA before special items of HealthCare rose by 1.9 percent to EUR 1,301 million (Q1 2013: EUR 1,277 million). The improvement was due to the very good business development at Pharmaceuticals, while earnings at Consumer Health declined slightly. Earnings were also held back by higher selling expenses and research and development costs.

"Our Life Science businesses continued their dynamic development and achieved slight earnings increases despite significant negative currency effects," Bayer CEO Dr. Marijn Dekkers said on Monday when the interim report was published. HealthCare experienced strong growth thanks to the gratifying development in sales of the recently launched pharmaceutical products. CropScience benefited from an early start to the season in Europe. MaterialScience, in particular, raised earnings substantially. "We are confident about our business development for the rest of the year and confirm our guidance for 2014," said Dekkers.

About Bayer HealthCare
The Bayer Group is a global enterprise with core competencies in the fields of health care, agriculture and high-tech materials. Bayer HealthCare, a subgroup of Bayer AG with annual sales of EUR 18.9 billion (2013), is one of the world's leading, innovative companies in the healthcare and medical products industry and is based in Leverkusen, Germany. The company combines the global activities of the Animal Health, Consumer Care, Medical Care and Pharmaceuticals divisions. Bayer HealthCare's aim is to discover, develop, manufacture and market products that will improve human and animal health worldwide. Bayer HealthCare has a global workforce of 56,000 employees (Dec 31, 2013) and is represented in more than 100 countries.

Most Popular Now

Findings open way for personalised MS treatment

Currently available therapies to treat multiple sclerosis (MS) lack precision and can lead to serious side effects. Researchers at Karolinska Institutet in Sweden have no...

Pfizer shares top-line results from Phase 2/3 EPIC…

Pfizer Inc. (NYSE: PFE) shared top-line results from the Phase 2/3 EPIC-PEP (Evaluation of Protease Inhibition for COVID-19 in Post-Exposure Prophylaxis) study evaluating...

Pfizer and Biohaven's VYDURA® (rimegepant) granted…

Pfizer Inc. (NYSE: PFE) and Biohaven Pharmaceutical Holding Company Ltd. (NYSE: BHVN) today announced that the European Commission (EC) has granted marketing authorizatio...

A smarter way to develop new drugs

Pharmaceutical companies are using artificial intelligence to streamline the process of discovering new medicines. Machine-learning models can propose new molecules that ...

Foundation S: Sanofi's new philanthropic spearhead

Sanofi today launches Foundation S - The Sanofi Collective, its philanthropic endowment fund aiming to create healthier futures for generations. Using donations, partners...

Cognitive impairment from severe COVID-19 equivale…

Cognitive impairment as a result of severe COVID-19 is similar to that sustained between 50 and 70 years of age and is the equivalent to losing 10 IQ points, say a team o...

SK bioscience and GSK's adjuvanted COVID-19 vaccin…

SK bioscience and GSK announced submission of a biologics license application for SKYCovione™ a recombinant protein-based COVID-19 vaccine candidate adjuvanted with GSK’s...

Investigational COVID mucosal vaccine protects aga…

In animal studies that mimic human exposures, an investigational COVID vaccine designed to be taken orally not only protects the host, but also decreases the airborne spr...

Using AI to analyze large amounts of biological da…

Researchers at the University of Missouri are applying a form of artificial intelligence (AI) - previously used to analyze how National Basketball Association (NBA) playe...

Asthma drug can block crucial SARS-CoV-2 protein

A drug used to treat asthma and allergies can bind to and block a crucial protein produced by the virus SARS-CoV-2, and reduce viral replication in human immune cells, ac...

Recurring brain tumor growth is halted with new dr…

When a non-metastatic brain tumor - a meningioma - recurs after surgery and radiation treatment, a patient is out of options. No drugs are approved for these aggressive t...

Pfizer to acquire Biohaven Pharmaceuticals

Pfizer Inc. (NYSE: PFE) and Biohaven Pharmaceutical Holding Company Ltd. (NYSE: BHVN) have entered into a definitive agreement under which Pfizer will acquire Biohaven, t...