The Company combines the global activities of the divisions Animal Health, Pharmaceuticals, Consumer Care and Medical Care. About 60,700 people are employed by Bayer HealthCare worldwide.
This subgroup researches, develops, manufactures and markets products to improve the health of people and animals.
- Sales 2014: 19,975 Euro million
- Workforce: 60,700 worldwide
- Operating profit 2014: 3,581 Euro million
- Headquarters: Leverkusen, Germany
Divisions of Bayer HealthCare
|Animal Health||Dr. Dirk Ehle||Monheim, Germany|
|Pharmaceuticals||Dieter Weinand||Berlin, Germany|
|Consumer Care||Erica L. Mann||Whippany, New Jersey (USA)|
|Medical Care||Alan Main||Whippany, New Jersey (USA)|
The globally operating HealthCare subgroup is divided into two reporting segments: Pharmaceuticals and Consumer Health.
The Pharmaceuticals segment focuses on prescription products, especially for women’s healthcare and cardiology, and also on specialty therapeutics in the areas of oncology, hematology and ophthalmology.
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.
The Medical Care Division comprises the Diabetes Care business unit, which markets blood glucose monitoring systems, and the Radiology business unit, which offers contrast-enhanced diagnostic imaging equipment along with the necessary contrast agents.
The products of the Animal Health Division are destined for use in livestock and companion animals.
Sales 2014Sales of the HealthCare subgroup rose by 7.5% (Fx & portfolio adj.) in 2014, to €19,975 million (reported: +5.6%). This encouraging growth was driven by our recently launched pharmaceutical products. Sales at Consumer Health came in slightly ahead of the prior year.
The integration of the businesses acquired from Merck & Co., Inc., United States, and from Dihon Pharmaceutical Group Co. Ltd., China, in the fourth quarter of 2014 is progressing on schedule.
|€ million||€ million||%||Fx(&p) adj %|
|- Division Consumer Care
|- Division Medical Care
|- Division Animal Health
|- Division Pharmaceuticals
Sales of the Pharmaceuticals segment climbed by a substantial 11.2% (Fx & portfolio adj.) to €12,052 million. This very good performance was driven by our recently launched products Xarelto™, Eylea™, Stivarga™, Xofigo™ and Adempas™, which posted combined sales of €2,908 million (2013: €1,522 million). Our Pharmaceuticals business grew in all regions on a currency-adjusted basis, particularly in China, the United States and Western Europe.
Our oral anticoagulant Xarelto™ maintained its growth momentum, with strong sales gains especially in Japan, France and Germany. Royalties received and recognized as sales in the United States, where Xarelto™ is marketed by a subsidiary of Johnson & Johnson, more than doubled. Following its approval in additional indications, sales of our eye medicine Eylea™ continued to rise substantially, particularly in Europe. The cancer drug Stivarga™ developed positively, and the cancer drug Xofigo™ (sales in 2014: €157 million; 2013: €41 million) also made a pleasing contribution to sales growth, especially in the United States. The market introduction of Adempas™ to treat various forms of pulmonary hypertension continued successfully in additional countries. Since October 2014, we have been collaborating with Merck & Co., Inc., United States, in the development and commercialization of Adempas™. The sales attributable to Bayer amounted to €89 million in 2014 (2013: €3 million). The one-time payment of €793 million from the sGC cooperation will be recorded as sales and earnings over a 13.5 year period. €15 million of this was accounted for in the fourth quarter.
Sales of the hormone-releasing intrauterine devices of the Mirena™ product family rose mainly as a result of higher prices and volumes in the United States. The cancer drug Nexavar™ posted gains, mainly as a result of price increases in the United States. Adalat™ for the treatment of hypertension and coronary heart disease, Aspirin™ Cardio for secondary prevention of heart attacks and our oral diabetes treatment Glucobay™ benefited from further rising demand in China.
Sales of our blood-clotting medicine Kogenate™ receded, due partly to the temporary use of production capacities to develop our next-generation hemophilia medicines. Sales of the multiple sclerosis drug Betaferon™/Betaseron™ fell particularly in the United States due to increased competition there. Business with our yaz™/Yasmin™/Yasminelle™ oral contraceptives was held back especially by generic competition in Western Europe and lower demand in Japan. Despite higher volumes in China, sales of the antibiotic Avalox™/Avelox™ declined overall, due particularly to the expiration of the patent in Europe and the United States. Sales of Levitra™ for the treatment of erectile dysfunction were down primarily in the United States.
EBIT of the Pharmaceuticals segment rose by a substantial 16.7% in 2014 to €2,371 million. This was mainly due to lower special charges of €286 million (2013: €521 million), which mainly included €173 million for the derecognition of goodwill as a result of the sGC collaboration with Merck & Co., Inc., United States, and €88 million in accounting measures for litigations. EBIT before special items increased by 4.1% to €2,657 million. We raised EBITDA before special items by 6.0% to €3,699 million. This earnings growth was mainly attributable to the encouraging business development and especially to the strong sales gains for our recently launched products, while earnings were diminished by higher selling and r&d expenses and roughly €330 million in negative currency effects.
Sales of the Consumer Health segment advanced by 2.1% (Fx & portfolio adj.) in 2014 to €7,923 million. The Consumer Care and Animal Health divisions achieved sales gains, especially in the Emerging Markets. Sales in the Medical Care Division declined particularly in the United States and Europe.
Sales in the Consumer Care Division rose by 5.3% (Fx & portfolio adj.) to €4,245 million. The business acquired from Merck & Co., Inc., United States, on October 1, 2014, accounted for €289 million of sales in the fourth quarter, which is traditionally weaker for seasonal reasons. We registered considerably higher sales of our pain reliever Aleve™ in the United States due mainly to a product line expansion. Our skincare product Bepanthen™/Bepanthol™ posted considerably higher sales on a currency-adjusted basis. Higher volumes in all regions contributed to this growth. Sales of our antifungal Canesten™ expanded particularly in the Emerging Markets. Driven partly by product line expansions, sales of our dietary supplement Supradyn™ developed positively in Europe. Business with the pain reliever Aspirin™ was held back mainly by a weak cold season in Europe. Business with our dietary supplement One A Day™ was held back mainly by lower demand in the United States.
Sales of the Medical Care Division fell by 3.7% (Fx & portfolio adj.) to €2,360 million. Sales of the Diabetes Care business declined overall despite positive development in the Emerging Markets. Business with our Contour™ line of blood glucose meters was held back, especially in the United States, due to reimbursement pressure and price decreases, mainly in the first half of the year. Sales of our contrast agents and medical equipment in the Radiology business were flat with the prior-year period on a currency-adjusted basis.
Business in the Animal Health Division improved by 4.0% (Fx & portfolio adj.) to €1,318 million. We raised sales of the Advantage™ product family of flea, tick and worm control products due to good development in Europe. Business with the Seresto™ flea and tick collar advanced substantially in Europe and the United States.
EBIT of the Consumer Health segment edged down by 1.5% in 2014 to €1,210 million after net special charges of €45 million (2013: €192 million). Reflected here are expenses of €122 million for the integration of acquired businesses and a one-time net gain of €77 million from the divestiture of the Interventional device business to Boston Scientific, United States. EBIT before special items fell by 11.7% to €1,255 million. EBITda before special items, at €1,785 million, was below the prior-year level (2013: €1,844 million). This was due to lower earnings at Medical Care and Animal Health along with negative currency effects of around €30 million. However, there was a positive effect from earnings growth at Consumer Care, to which the business acquired from Merck & Co., Inc., United States, contributed €73 million.
Research & Development 2014
Research and development expenses at HealthCare rose by 3.6% (Fx adj.) in 2014 to €2,301 million. Adjusted for special items of €4 million (2013: €190 million), this represented a 13.0% increase (Fx adj.) and was equivalent to 11.5% of HealthCare sales. At the end of the reporting period there were 8,100 employees working in research and development at HealthCare.