Magazine
#15 Bayer Schering
Bayerwerk, Gebäude W11, Kaiser-Wilhelm-Allee, 51368 Leverkusen, Germany
Tel: (49) 214 30 1Fax: (49) 214 30 66328
www.bayer.com
| Headcount | 108,600 (53,100 in pharma) | |
| Year Established | 1971 | |
| Pharma Revenues | $13,803 | +12%/+5%* |
| Total Revenues | $48,434 | +9%/+2%* |
| Net Income | $2,529 | -61%/-64%* |
| R&D Budget | $2,266 | +9%/+1%* |
* converted at avg. exch. rate / based on local currency (Euro)
| 2008 Top Selling Drugs | |||
| Drug | Indication | Sales | (+/-%) |
| Yasmin | female health | $1,798 | +26% |
| Betaferon | MS | $1,683 | +19% |
| Kogenate | hemophilia | $1,248 | +11% |
| Adalat | hypertension | $921 | +9% |
| Avalox | antibiotic | $680 | +11% |
| Nexavar | oncology | $680 | +84% |
| Mirena | women's health | $680 | +37% |
| Levitra | erectile dysfunction | $502 | +10% |
| Cipro | antibiotic | $497 | -5% |
Account for 63% of total pharma sales, up from 59% in 2007.
PROFILE
Bayer Schering Pharma’s 2008, following up the most successful year in its history — attributed in part to the Schering integration — was sobering for Germany’s largest drug-maker. Bayer’s corporate strategy however, appears to be on the right track (if we consider investment in R&D to be the right track). According to Werner Wenning, chairman of the board of management, “In these turbulent times we could, of course, help to improve earnings in the short term by cutting back on research. But that would not be a sustainable strategy. It would simply be short-sighted.”
The company plans to fortify its research activities with a $4.0 billion R&D budget for 2009, the highest in the company’s history. Some recent R&D investments include bulking up its oncology pipeline through alliances, and license deals, as well as the acquisition of Maxygen’s hemophilia program assets, including next-gen recombinant Factor VIIa protein MAXY-VII, in a transaction valued at $90 million.
Bayer’s investment in the Asia Pacific region has been escalating. Of its $15.4 billion in 2008 sales, Asia Pacific accounted for $2.3 billion, up 13%. Bayer will invest as much as $14 million in R&D activities in Singapore during the next five to eight years through cancer research pact with the National University of Singaporeand will invest approximately $140 million during the next five years to establish a global R&D center in Beijing, China.
On the other hand, in June, Bayer officially handed over worldwide rights to Campath to Genzyme, who will take over responsibility for the development and commercialization of the drug in MS. Bayer has also relinquished worldwide marketing and distribution rights to oncology drugs Fludara and Leukine. In turn, Bayer will receive future payments based on revenue.
In 2008, cancer drug Nexavar achieved 76% growth, offsetting the drop in hematology/cardiology sales (-13%), impacted by the suspension of Trasylol back in November 2007. The company also began marketing anti-thrombosis drug Xarelto in the EU. However, the NDA, filed in July 2008 by Bayer’s U.S. partner J&J, was met with a Complete Response Letter. Although no new clinical studies are required for approval, the FDA has some questions.
Fortunately, sales for the YAZ family of oral contraceptives, which despite the launch of a generic competitor for Yasmin, were up 22%. A deal with generics manufacturer Barr, supplements these revenues. As of July 2008, Bayer supplies Barr with a generic version of Yasmin and gets a fixed percentage of the revenues. The two companies have a similar agreement for the generic version of Yaz in the U.S. starting July 2011.
On the whole, the 2009 outlook remains dominated by uncertainty, but with any luck, Bayer will be rewarded for its faith in R&D.—KB
For the full Bayer Schering profile, including pipeline and patent information, download the PDF.
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