Germany-based Bayer (ETR: BAYN) has released its financial report for the first quarter of 2023, revealing a 1.1% decrease in group sales, excluding exchange effects, to €14.389 billion (USD 15.74 billion). Net profits fell 33.8% year-on-year (YOY) to €2.178 billion, reflecting the ongoing challenges in the pharmaceutical industry.
Pharmaceuticals Unit Sales and Regional Analysis
Bayer’s Pharmaceuticals unit experienced a 3.1% decline in sales, reaching €4.407 billion (USD 4.8 billion). Regional performance varied, with North American sales increasing by 5.4% to €1.11 billion, Latin America up by 3.7% to €221 million, and Europe/Middle East/Africa down by 2.1% to €1.771 billion. The Asia/Pacific region saw a significant drop of 10.8% YOY to €1.305 billion (USD 1.4 billion), with China’s volume-based procurement (VBP) program identified as a significant factor. Notably, Xarelto (rivaroxaban) and Adalat (nifedipine) sales plummeted by 12.8% and 23.9%, respectively.
COVID-19 Disruptions and Future Growth Prospects
The disruptions caused by COVID-19 have impacted Bayer’s prescription drug business. However, the company anticipates significant growth from this unit in the future, driven by the global rapid uptake of prostate cancer therapy Nubeqa (darolutamide) and kidney disease drug Kerendia (finerenone), as well as a robust radiology business.
Global Consumer Health Sales Increase
Global Consumer Health sales increased by 4.1% YOY to €1.573 billion (USD 1.72 billion), with the Allergy & Cold and Dermatology categories leading the growth. Regional increases were seen in North America (€612 million, +1.2%), Latin America (€201 million, +16.1%), and Europe/Middle East/Africa (€516 million, +5.7%), while Asia-Pacific dropped by 1.2% YOY to €244 million.
Leadership Transition and Pipeline Updates
As previously reported, former Roche Pharma CEO Bill Anderson joined Bayer’s management committee from April 1, 2023, and will officially take over as CEO from June 1, 2023. Current CEO Werner Baumann will retire at the end of May 2023. During Q1, Bayer discontinued four clinical trials affecting three products, including a bradykinin receptor B1 (BDKRB1) receptor antagonist and a P2X4 inhibitor, indicating a strategic realignment of the company’s pipeline.-Fineline Info & Tech
