Germany-based Bayer (ETR: BAYN) released its 2022 annual report this week, revealing a global sales growth of 8.7% year-on-year (YOY) in constant exchange rate and portfolio-adjusted terms, reaching EUR 50.7 billion (USD 53.8 billion). The report highlights significant performances across its business segments, particularly in Pharmaceuticals and Consumer Health.
Pharmaceuticals and Consumer Health Growth
Within the total sales, the Pharmaceuticals division generated EUR 19.3 billion (USD 20.4 billion), marking a 1.1% growth driven by new product launches and the radiology business. Consumer Health saw a robust 8.4% growth to EUR 6.1 billion (USD 6.4 billion), with gains across all regions and categories.
Blockbuster Drugs and New Launches
During the 12-month period, several drugs achieved blockbuster status, including oral anticoagulant Xarelto (rivaroxaban) with global sales of EUR 4.5 billion (USD 4.8 billion), ophthalmic injection Eylea (aflibercept) at EUR 3.2 billion (USD 3.4 billion), and contraceptive Jaydess (levonorgestrel) at EUR 1.3 billion (USD 1.4 billion). Notably, Eylea reported a growth of +9.2%. The report also spotlighted newly launched drugs such as prostate cancer treatment Nubeqa (darolutamide) and kidney disease preventive Kerendia (finerenone), which generated EUR 466 million (USD 494 million) and EUR 107 million (USD 113 million) respectively, and are expected to be key growth drivers.
Impact of VBP and Market Dynamics
Xarelto’s sales were down 4% YOY in Q4 and 6% over the 12 months, significantly affected by China’s volume-based procurement (VBP) program, along with pricing pressure in the UK and patent expiration in Brazil. Similarly, heart disease treatment Adalat (nifedipine) and cancer drug Nexavar (sorafenib) experienced sales drops in China due to VBP tendering, with Adalat sales down 28% YOY in Q4 and expected to plummet 50% in 2023, while Nexavar sales dropped 38.62%. Despite these challenges, there were positive market dynamics, with strong volume growth and stable prices for heart attack preventive Aspirin Cardio (acetylsalicylic acid) and liver cancer drug Stivarga (regorafenib).
Future Outlook and Growth Projections
During the earnings conference call, Bayer CEO Werner Baumann predicted further growth for 2023, with price cuts on mature drugs expected to be offset by new product launches. Head of Pharmaceuticals Stefan Oelrich commented that the combined sales of Nubeqa and Kerendia should surpass EUR 1 billion (USD 1.1 billion) this year and peak at over EUR 6 billion (USD 6.4 billion) in the future. He also projected a similar combined peak sales for anticoagulant asundexian and postmenopausal drug elinzanetant, both currently in Phase III, which is expected to more than offset further patent expiries for Xarelto in markets such as Australia, Canada, and Mexico this year.-Fineline Info & Tech
