On February 27th, Bayer announced its 2018 financial report. The Group achieved a total revenue of 39.586 billion euros, an increase of 13.1% compared with 2017. The total revenue of the pharmaceutical business was 16.746 billion euros (-0.6%), the income from consumer health business was 5.45 billion euros (-7%), the income from crop business was 14.266 billion euros (+49%), and the income from animal health business was 924 million euros (-2.8). %). In 2018, Bayer’s total R&D investment was 5.246 billion euros, an increase of 16.5% compared to 2017.
Bayer’s pharmaceutical business grew weak overall, with recessions in North America and Latin America, and Asia Pacific’s emerging markets growing only 3.8%. In the new product, Xofigo, a new drug for prostate cancer, has begun to languish as the demand in the European and American markets declines. In addition to continuing to rely on the two products of Eylea and Xarelto, the old product of the hypoglycemic agent Glucobay (Akapoose) is also a bit “old”, hitting a new high of 623 million euros. It is said that market demand comes from the big Eastern countries.
Bayer’s new drug development has been broken. The new product that is applied to the FDA in the pipeline is only one of the androgen receptor antagonist darolutamide for prostate cancer. Other new products are in stage III or earlier, and it is worth to focus on. There are very few products in the later period. This may be related to Bayer’s diversified development strategy.
In 2018, Bayer’s R&D investment in the pharmaceutical business was 2.893 billion euros, accounting for 55% of its total R&D investment, compared to no increase in 2017. Compared with other pharmaceutical-based giants, it is not enough. Another 1.95 billion euros in fees are in the crop business.
Bayer is also planning to start major operations on the company’s business. After gradually digesting the $62.5 billion acquisition of Monsanto, Bayer officially acknowledged that major changes will be made at the end of last year, and large-scale personnel adjustments will be made to all business units including animal health, consumer health, and pharmaceuticals. Cut about 12,000 jobs. In addition, Bayer intends to sell the animal health business unit.
Werner Baumann, Chairman of the Bayer Group, said: “This adjustment decision is designed to enable Bayer to focus on the core life sciences business, increase productivity and innovation, while significantly enhancing competitiveness. Through these measures, we will position Bayer’s future as a life. Science company”.