German pharmaceuticals firm Bayer reported an 8.8% increase in sales to €39.8bn at constant exchange rates in 2012, the highest amount in the company’s 150-year history.
Chief executive Marijn Dekkers said growth was driven by ‘sharply expanded business in emerging markets’ and sales of the healthcare subgroup, which rose by 8.4% to €18.6m, after strong performances in both pharmaceuticals, which grew by 4.2% to €10.8bn, and consumer health, also up 4.2%, to €7.8bn.
Dekkers said in pharmaceuticals, the company made good progress with the marketing of new products from its pipeline. Among the segment’s top products, the anticoagulant Xarelto achieved the highest growth rate of 265.9% following its introduction in further countries and indications. Sales of Aspirin Cardio to prevent heart attacks rose by 12.3% mainly owing to the steady expansion of marketing activities in China.
The gain in the emerging markets, at 7.4%, was twice as large as in the industrialised countries, said Dekkers. ‘In other words, our strategic focus on these markets of the future – and the investments we are making there – are paying off.’
Net income declined by 1% to €2.5bn, while EBITDA before special items rose by 8.8% to €8.3bn.
Healthcare’s ongoing priority for 2013 is to successfully commercialise new pharmaceutical products
For 2013, Bayer anticipates currency- and portfolio-adjusted sales growth of 4–5% to around €41bn.
Healthcare’s ongoing priority for 2013 is to successfully commercialise new pharmaceutical products. Sales are expected to advance by a mid-single-digit percentage on a currency- and portfolio-adjusted basis to approximately €19bn, with an increase in EBITDA before special items.
In the pharmaceuticals segment, sales are expected to increase in 2013 to around €11bn, and to €8bn for consumer health.
Further important development candidates in Bayer’s pharmaceuticals pipeline include riociguat to treat two serious, life-threatening forms of pulmonary hypertension. In oncology, the company also has high hopes for Stivarga to treat advanced colorectal cancer and gastrointestinal stromal tumours, and radium-223 dichloride (Alpharadin) to treat bone metastases in prostate cancer. In ophthalmology, Eylea is also making progress in the treatment of wet age-related macular degeneration.
Overall, the company believes these products, with Xarelto, have peak annual sales potential in excess of €5.5bn, with Xarelto alone planned to achieve sales of more than €2bn.