07.22.14
$3.48 Billion
KEY EXECUTIVES:
Dr. Marijn Dekkers, Board Chairman & CEO, Bayer AG
Dr. Olivier Brandicourt, CEO, Bayer Healthcare
Prof. Wolfgang Plischke, Chairman, Bayer Healthcare
Alan Main, President, Bayer Medical Care
Jennifer Farr, Head of Quality, Bayer Medical Care
Christiane Pering, M.D., Chief Medical Officer and Head of Innovation, Bayer Medical Care
Per Edlund, Head, Radiology & Interventional Region, Europe
Michael Kloss, Global Head, Diabetes Care Commercial Operations
Samuel Liang, Head of Radiology Strategic Business Unit; Global Head, Interventional franchise
Bryan Loo, Head, Radiology & Interventional Region, Asia-Pacific and China
Eckhard Puchert, Ph.D., Head, Radiology & Interventional Region, Japan
NO. OF EMPLOYEES: 56,000 (110,000 total)
GLOBAL HEADQUARTERS: Leverkusen, Germany
Pietro Currado can still remember his son’s foray into literacy.
Currado, a Bayer AG pharmaceutical salesman in Calabria, Italy, had just returned home from a business trip in the early 1990s when his wife approached him with some big news: Their preschool-age son, Damiano (now studying medicine in college), had written his first word.
Naturally, Currado assumed the boy had written “mommy” or “Dad” (thinking the latter was a much easier word for unschooled youngsters to master). But Damiano chose neither parent for his cuneiform debut.
He went with a much more familiar word: Bayer.
“He [Damy] had copied it from the many information leaflets all around the house. At the time, we were launching an antibiotic. My house was full of paper, books, notebooks, pens, gadgets of all shapes with the new product—and always with the Bayer logo,” Currado wrote. “Bayer was present all around the house. By seeing so much of it my child had memorialized it so well. In the following days he filled entire sheets with the name, partly because he was amused by the fact that everyone was intrigued by this.”
Currado’s fond memory of his first-born’s written milestone was just one of 1,200 Bayer-related anecdotes employees shared to celebrate the multinational’s 150th anniversary last year. The event was truly a global affair, with commemorative activities that ranged from a worldwide airship tour (displaying the iconic Bayer cross) and art exhibit (featuring 240 of the company’s 2,000 works) to a scientific symposium; a German postage stamp; an interactive, multimedia exhibition focused on healthcare, agriculture and high-performance materials; a scientific symposium; a 30,000-guest party featuring acrobats, comedians and a human Bayer cross; and even a pop song (“A Better Life”).
Though they were left off the official invitation list, customers nevertheless paid their respects to the company with a gift of record revenues and potent stock growth. 2013 sales rose 2.7 percent to 40.1 billion euros ($55.2 billion) and core earnings per share jumped 5.8 percent to 5.61 euros ($7.72), according to Bayer’s latest annual report.
Gross profit increased 4.7 percent to 20.8 billion euros ($28.6 billion) and EBIT surged 30.5 percent to 4.9 billion euros ($6.8 billion). Net income was up significantly as well, skyrocketing 34.3 percent past its 2012 gross to 3.1 billion euros, or $4.3 billion.
Bayer CEO and Board Chairman Marijn Dekkers, Ph.D., attributed his company’s stellar anniversary year financial performance to robust growth in the HealthCare and CropScience subgroups. Net HealthCare sales climbed 6.1 percent to 18.9 billion euros ($26 billion) due to several acquisitions and solid growth in most world regions. Europe was the top money-maker, garnering an additional 10.5 percent in sales for Bayer in 2013. North America came next, adding 5 billion euros ($6.9 billion) to company coffers, a 6.1 percent increase compared with 2012. Asia Pacific brought up the rear with a 3.6 increase, offsetting flat sales in the Latin America/Africa/Middle East region.
Influential acquisitions included the $1.1 billion purchase of Conceptus Inc., the buyout of herbal medicines maker Steigerwald Arzneimettelwerk GmbH, and the $2.8 billion takeover of Norwegian cancer drug maker Algeta ASA, which strengthens Bayer’s oncology business and gives the firm full control of Xofigo, a prostate cancer therapy drug estimated to generate more than 5.5 billion euros annually.
The Steigerwald agreement broadens Bayer’s product offerings for gastrointestinal disorders, while the Conceptus partnership complements the company’s offerings in women’s health.
U.S. regulators approved the Conceptus device in 2002. Its pair of flexible metal and fiber coils provides permanent contraception, similar to tubal ligation but requires neither surgery nor general anesthesia. A doctor inserts the coils through the vagina and uterus in a 10-minute procedure. Once in place, the devices elicit tissue growth that block the fallopian tubes within a few months, preventing sperm from reaching an egg. More than 750,000 women have undergone the procedure, according to Conceptus.
“Conceptus truly has a unique proposition in the women’s health-care arena with the Essure technology,” Stephens Inc. analyst Chris Cooley told Bloomberg when the deal was announced. “As different methodologies of birth control become increasingly available, it’s likely to receive greater use.”
New drug launches also contributed to the overall success of Bayer’s HealthCare subgroup, specifically the anticoagulant Xarelto for stroke and thrombosis prophylaxis; Eylea for age-related macular degeneration and macular edema; Stivarga for advanced metastatic colorectal cancer; Xofigo for bone metastases in prostate cancer; and Adempas for pulmonary hypertension. The drug quintuple grossed 1.5 billion euros ($2 billion) for the HealthCare subgroup in 2013 (year ended Dec. 31) and helped boost Pharmaceutical segment revenues 8.4 percent to 11.1 billion euros ($15.4 billion). Drug sales were strong worldwide, with the most growth occurring in North America, where proceeds increased 12.9 percent to 2.5 billion euros ($3.5 billion). A 2 percent shortfall in Latin America/Africa/Middle East revenue easily was offset by a 10.4 percent sales jump in Europe and a 7.9 percent increase in Asia Pacific earnings.
The Consumer Health segment grew sales 2.9 percent to 7.7 billion euros, or $10.6 billion due to solid gains in the Consumer Care and Animal Health divisions (expanding 7.4 percent and 5.8 percent respectively) as well as higher product demand in emerging markets, particularly in Brazil and Russia. Earnings jumped 21.4 percent to 1.2 billion euros, or $1.7 billion.
Medical Care division sales fell slightly (0.5 percent) to 2.5 billion euros, or $2.48 billion. Executives blamed the division’s weak performance on reimbursement pressures and lower prices in the United States, though the setback was partly offset by sales gains for the company’s Contour blood glucose meter line. Stable sales of contrast agents and medical devices in the Radiology & Interventional business also helped.
KEY EXECUTIVES:
Dr. Marijn Dekkers, Board Chairman & CEO, Bayer AG
Dr. Olivier Brandicourt, CEO, Bayer Healthcare
Prof. Wolfgang Plischke, Chairman, Bayer Healthcare
Alan Main, President, Bayer Medical Care
Jennifer Farr, Head of Quality, Bayer Medical Care
Christiane Pering, M.D., Chief Medical Officer and Head of Innovation, Bayer Medical Care
Per Edlund, Head, Radiology & Interventional Region, Europe
Michael Kloss, Global Head, Diabetes Care Commercial Operations
Samuel Liang, Head of Radiology Strategic Business Unit; Global Head, Interventional franchise
Bryan Loo, Head, Radiology & Interventional Region, Asia-Pacific and China
Eckhard Puchert, Ph.D., Head, Radiology & Interventional Region, Japan
NO. OF EMPLOYEES: 56,000 (110,000 total)
GLOBAL HEADQUARTERS: Leverkusen, Germany
Pietro Currado can still remember his son’s foray into literacy.
Currado, a Bayer AG pharmaceutical salesman in Calabria, Italy, had just returned home from a business trip in the early 1990s when his wife approached him with some big news: Their preschool-age son, Damiano (now studying medicine in college), had written his first word.
Naturally, Currado assumed the boy had written “mommy” or “Dad” (thinking the latter was a much easier word for unschooled youngsters to master). But Damiano chose neither parent for his cuneiform debut.
He went with a much more familiar word: Bayer.
“He [Damy] had copied it from the many information leaflets all around the house. At the time, we were launching an antibiotic. My house was full of paper, books, notebooks, pens, gadgets of all shapes with the new product—and always with the Bayer logo,” Currado wrote. “Bayer was present all around the house. By seeing so much of it my child had memorialized it so well. In the following days he filled entire sheets with the name, partly because he was amused by the fact that everyone was intrigued by this.”
Currado’s fond memory of his first-born’s written milestone was just one of 1,200 Bayer-related anecdotes employees shared to celebrate the multinational’s 150th anniversary last year. The event was truly a global affair, with commemorative activities that ranged from a worldwide airship tour (displaying the iconic Bayer cross) and art exhibit (featuring 240 of the company’s 2,000 works) to a scientific symposium; a German postage stamp; an interactive, multimedia exhibition focused on healthcare, agriculture and high-performance materials; a scientific symposium; a 30,000-guest party featuring acrobats, comedians and a human Bayer cross; and even a pop song (“A Better Life”).
Though they were left off the official invitation list, customers nevertheless paid their respects to the company with a gift of record revenues and potent stock growth. 2013 sales rose 2.7 percent to 40.1 billion euros ($55.2 billion) and core earnings per share jumped 5.8 percent to 5.61 euros ($7.72), according to Bayer’s latest annual report.
Gross profit increased 4.7 percent to 20.8 billion euros ($28.6 billion) and EBIT surged 30.5 percent to 4.9 billion euros ($6.8 billion). Net income was up significantly as well, skyrocketing 34.3 percent past its 2012 gross to 3.1 billion euros, or $4.3 billion.
Bayer CEO and Board Chairman Marijn Dekkers, Ph.D., attributed his company’s stellar anniversary year financial performance to robust growth in the HealthCare and CropScience subgroups. Net HealthCare sales climbed 6.1 percent to 18.9 billion euros ($26 billion) due to several acquisitions and solid growth in most world regions. Europe was the top money-maker, garnering an additional 10.5 percent in sales for Bayer in 2013. North America came next, adding 5 billion euros ($6.9 billion) to company coffers, a 6.1 percent increase compared with 2012. Asia Pacific brought up the rear with a 3.6 increase, offsetting flat sales in the Latin America/Africa/Middle East region.
Influential acquisitions included the $1.1 billion purchase of Conceptus Inc., the buyout of herbal medicines maker Steigerwald Arzneimettelwerk GmbH, and the $2.8 billion takeover of Norwegian cancer drug maker Algeta ASA, which strengthens Bayer’s oncology business and gives the firm full control of Xofigo, a prostate cancer therapy drug estimated to generate more than 5.5 billion euros annually.
The Steigerwald agreement broadens Bayer’s product offerings for gastrointestinal disorders, while the Conceptus partnership complements the company’s offerings in women’s health.
U.S. regulators approved the Conceptus device in 2002. Its pair of flexible metal and fiber coils provides permanent contraception, similar to tubal ligation but requires neither surgery nor general anesthesia. A doctor inserts the coils through the vagina and uterus in a 10-minute procedure. Once in place, the devices elicit tissue growth that block the fallopian tubes within a few months, preventing sperm from reaching an egg. More than 750,000 women have undergone the procedure, according to Conceptus.
“Conceptus truly has a unique proposition in the women’s health-care arena with the Essure technology,” Stephens Inc. analyst Chris Cooley told Bloomberg when the deal was announced. “As different methodologies of birth control become increasingly available, it’s likely to receive greater use.”
New drug launches also contributed to the overall success of Bayer’s HealthCare subgroup, specifically the anticoagulant Xarelto for stroke and thrombosis prophylaxis; Eylea for age-related macular degeneration and macular edema; Stivarga for advanced metastatic colorectal cancer; Xofigo for bone metastases in prostate cancer; and Adempas for pulmonary hypertension. The drug quintuple grossed 1.5 billion euros ($2 billion) for the HealthCare subgroup in 2013 (year ended Dec. 31) and helped boost Pharmaceutical segment revenues 8.4 percent to 11.1 billion euros ($15.4 billion). Drug sales were strong worldwide, with the most growth occurring in North America, where proceeds increased 12.9 percent to 2.5 billion euros ($3.5 billion). A 2 percent shortfall in Latin America/Africa/Middle East revenue easily was offset by a 10.4 percent sales jump in Europe and a 7.9 percent increase in Asia Pacific earnings.
The Consumer Health segment grew sales 2.9 percent to 7.7 billion euros, or $10.6 billion due to solid gains in the Consumer Care and Animal Health divisions (expanding 7.4 percent and 5.8 percent respectively) as well as higher product demand in emerging markets, particularly in Brazil and Russia. Earnings jumped 21.4 percent to 1.2 billion euros, or $1.7 billion.
Medical Care division sales fell slightly (0.5 percent) to 2.5 billion euros, or $2.48 billion. Executives blamed the division’s weak performance on reimbursement pressures and lower prices in the United States, though the setback was partly offset by sales gains for the company’s Contour blood glucose meter line. Stable sales of contrast agents and medical devices in the Radiology & Interventional business also helped.