Germany’s Bayer (ETR: BAYN) has released its financial results for 2023, marking a year of declining sales that culminated in a 1.2% year-on-year (YOY) drop in constant currency and portfolio-adjusted terms, reaching €47.6 billion (USD 51.7 billion). The Pharmaceuticals segment generated €18.1 billion (USD 19.6 billion) with a 0.4% decline despite a slight volume increase and positive reception to new products, which was partly offset by a significant downturn in China. The Consumer Health segment grew by 6.3% to €6.0 billion (USD 6.5 billion), driven by strength in dermatology, pain, cardiology, and a robust cold season.
Bayer’s blockbuster drugs from 2022 maintained their status, with the oral anticoagulant Xarelto (rivaroxaban), ophthalmic injection Eylia/Eylea (aflibercept), and contraceptive Jaydess (levonorgestrel) achieving global sales of €4.1 billion (USD 4.4 billion), €3.2 billion (USD 3.5 billion), and €1.2 billion (USD 1.3 billion) respectively, with only Eylia/Eylea reporting a growth of 5.6%. Notably, the newly launched prostate cancer drug Nubeqa (darolutamide) and kidney disease prophylactic Kerendia (finerenone) surged by 93.6% and 160.6% to €869 million (USD 943 million) and €270 million (USD 293 million) respectively, emerging as key growth drivers.
Geographically, Bayer saw growth in the Europe/Middle East/Africa region, increasing by 3.1% YOY to €14.1 billion (USD 15.3 billion), and in Latin America by 0.8% to €8.9 billion (USD 9.7 billion). However, the company experienced a 4.5% and 3.4% decline in North America and Asia/Pacific to €16.2 billion (USD 17.6 billion) and €8.4 billion (USD 9.1 billion) respectively.
China’s drug sales plummeted due to pandemic-related challenges, the inclusion of the blood thinner Adalat (nifedipine) in the VBP scheme, reduced demand due to the healthcare sector’s anti-corruption campaign, competition on anticoagulants like Xarelto and Kovaltry, and lower demand for the liver cancer drug Stivarga (regorafenib). In contrast, there was volume growth for Eylea in the country.
CEO Bill Anderson announced that the proposed separation of either the Consumer Health or Crop Science unit is to be deferred, as the company will concentrate over the next 2 to 3 years on bolstering its pharmaceuticals pipeline, addressing litigation, reducing debt, and enhancing performance.- Flcube.com
