Bayer HealthCare / Corporate profile

Bayer HealthCare

Picture: two scientists
The Company combines the global activities of the divisions Animal Health, Pharmaceuticals, Consumer Care and Medical Care. About 56,000 people are employed by Bayer HealthCare worldwide.

  • Sales 2013: 18,924 Euro million
  • Workforce: 56,000 worldwide
  • Operating profit 2013: 3,260 Euro million
  • Headquarters: Leverkusen, Germany

Divisions of Bayer HealthCare

ManagementBased in
Animal Health
Dr. Dirk EhleMonheim, Germany
PharmaceuticalsAndreas FibigBerlin, Germany
Consumer Care
Erica L. MannWhippany, New Jersey (USA)
Medical Care
Alan MainWhippany, New Jersey (USA)
The globally operating HealthCare subgroup is divided into two reportable segments: Pharmaceuticals and Consumer Health.

The Pharmaceuticals segment consists of two business units focusing on prescription products:
  • General Medicine, primarily comprising women’s healthcare and cardiovascular health products; and
  • Specialty Medicine, comprising medicines that are mainly prescribed by specialist physicians.

Our Consumer Health segment includes the Consumer Care, Medical Care and Animal Health divisions.

The main focus of the Consumer Care Division is on non-prescription medicines, dietary supplements and dermatology products.

Medical Care comprises the businesses with blood glucose meters, contrast-enhanced diagnostic imaging equipment together with the necessary contrast agents, and mechanical systems for treating constricted or blocked blood vessels.

The products of the Animal Health Division are destined for use in livestock and companion animals.

Sales 2013

Sales of the HealthCare subgroup rose by 6.8% (Fx & portfolio adj.) in 2013, to €18,924 million (reported: +1.7%). This encouraging growth was driven by our recently launched pharmaceutical products.

  € million € million % Fx(&p) adj %
Bayer HealthCare 18,604 18,924 1.7 6.8
- Division Consumer Care
3,853 3,904 1.3 5.1
- Division Medical Care
2,650 2,526 -4.7 -0.7
- Division Animal Health
1,303 1,306 0.2
- Division Pharmaceuticals
10,798 11,188 3.6 9.4

Performance 2013

Sales in the Pharmaceuticals segment climbed by 9.4 percent (Fx & portfolio adj.) to EUR 11,188 million. This development was largely driven by recently launched products – the anticoagulant Xarelto™, the eye medicine Eylea™, and the cancer drugs Stivarga™ and Xofigo™ – which posted combined sales of EUR 1,520 million (2012: EUR 368 million.

Marketing of the pulmonary hypertension treatment Adempas™ (active ingredient: riociguat) began in the fall after Bayer received marketing authorizations in North America.

Estimated peak annual sales potential for Xarelto™ was increased from more than EUR 2 billion to approximately EUR 3.5 billion, while that of Eylea™ was raised from at least EUR 1 billion to at least EUR 1.5 billion.

Among Bayer's established top pharmaceutical products, sales of the blood-clotting medicine Kogenate™ increased by 6.4 percent on a currency-adjusted basis (Fx adj.) thanks to higher volumes.

By contrast, sales of the multiple sclerosis drug Betaferon™/Betaseron™ receded as expected, particularly in the United States due to increased competition, and were down 11.6 percent (Fx adj.) year on year worldwide.

Business with the YAZ™/Yasmin™/Yasminelle™ line of oral contraceptives was hampered by generic competition, especially in Western Europe and the United States. Sales of these products declined by 12.5 percent (Fx adj.) overall.

Sales of the Consumer Health segment advanced by 3.2 percent (Fx & portfolio .adj.) to EUR 7,736 million.

In Consumer Care, the skincare product Bepanthen™/Bepanthol™ and the dietary supplement Supradyn™ in particular registered growth (Fx adj. 20.3 percent and 14.3 percent, respectively).

In the Medical Care Division, the Diabetes Care business performed at around the previous year’s level in a shrinking overall market. Sales of the Contour™ line of blood glucose meters advanced by 2.2 percent (Fx adj.).

However, sales of contrast agents and medical devices (Radiology & Interventional) were at the prior-year level on a currency-adjusted basis.

The Animal Health business benefited from factors including an increase of 2.0 percent (Fx adj.) in sales of the Advantage™ line of flea, tick and worm control products.

EBITDA before special items of HealthCare rose by 4.2 percent to EUR 5,334 million (2012: EUR 5,119 million). This was attributable to the gratifying business development in Pharmaceuticals, while earnings in Consumer Health posted a slight decline. Earnings at HealthCare were diminished by negative currency effects of about EUR 290 million.

Research & Development 2013

In 2013 we spent €2,040 million (2012: €1,955 million) for research and development in the Pharmaceuticals and Consumer Health segments. This amounted to 63.9% of R&D spending in the Bayer Group and was equivalent to 10.8% (2012: 10.5%) of HealthCare sales. At the end of 2013, some 7,800 employees of HealthCare were working in research and development.

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