Germany-based Bayer (ETR: BAYN) has released its financial report for the first quarter of 2024, showing a slight 0.6% year-on-year (YOY) decrease in group sales to EUR 13.8 billion (USD 14.9 billion), excluding portfolio and exchange rate effects. The pharmaceuticals business segment reported a 3.9% increase in sales, reaching EUR 4.4 billion (USD 4.7 billion), propelled by the strong performance of recently launched medicines Nubeqa (darolutamide) and Kerendia (finerenone). However, this growth was not sufficient to offset the 1.8% and 3.0% declines in the consumer health and crop science units, which reported sales of EUR 1.4 billion (USD 1.5 billion) and EUR 7.9 billion (USD 8.6 billion), respectively.
Regional drug sales experienced significant growth in Latin America, surging 35.4% to EUR 239 million, while Europe/Middle East/Africa saw a 6.1% increase to EUR 1.8 billion, and North America rose by 1.1% to EUR 1.1 billion. The Asia/Pacific region, however, saw a 2.0% contraction in pharmaceuticals sales to EUR 1.2 billion, with China’s reduced demand for cardiovascular drug Aspirin Cardio (acetylsalicylic acid) and the impact of tender procedures on anticoagulant Adalat (nifedipine) being contributing factors. Despite this, China was noted as a key sales driver for cancer drug Nubeqa and cardiovascular therapy Kerendia.
During the earnings call, Chairman and CEO Bill Anderson addressed the job cuts announced earlier in the year, revealing that the cost-reduction initiative has resulted in 1,500 redundancies in the first quarter, with approximately 67% being management positions, leading to a significant reduction in the company’s senior leadership circle.- Flcube.com
