The 2006 financial year was one of the most significant in Bayer's history, according to Werner Wenning, chairman of the board of management, with sales up by 17% and a record operating performance.
The highlight of the year was the Euro 17bn acquisition of Schering. The integration of Schering is proceeding apace, Wenning said, with many of the major decisions having been made, including the common operating model, the organisational structure and site-related issues. Last year the Schering business contributed €3.1bn to Bayer Group sales.
In 2006, Bayer Group sales as a whole rose 17%, or €4.3bn, to €29bn. Adjusted for currency fluctuations and portfolio changes, growth amounted to 5%. Strongest growth was achieved in Europe, where business expanded by 17.5% to €12.7bn. Year-on-year sales also rose sharply in Greater China, up by 24% to €1.5bn.
Sales of Bayer HealthCare rose by 47% to €11.7bn in 2006, with particularly encouraging figures in Europe and North America. Global sales of the pharmaceuticals segment climbed by 84% to €7.5bn. EBITDA before special items jumped by 76% to e2.6bn. Even without Schering's contribution of €774m, the increase was 24%, said Wenning.
A number of products that performed particularly well:
- Pro forma sales of the Yasmin family of oral contraceptives advanced by 36%
- Erectile dysfunction treatment Levitra and hemophilia drug Kogenate each saw sales growth of 20%
- Betaferon/Betaseron sales for the treatment of multiple sclerosis expanded by 14% pro forma
- Cancer drug Nexavar posted sales of €130m in the year of its introduction
The company also entered into a collaboration with US biotech company Regeneron Pharmaceuticals to develop and market a product for the treatment of eye diseases; received marketing authorisation in nearly 50 countries for kidney cancer drug Nexavar; specified the phase III trial programme for thrombosis drug rivaroxaban and began the studies for the chronic indications; and strengthened the potential of Betaferon/Betaseron and the Yasmin product family by expanding their registrations.
In the coming year Bayer aims to grow Group sales by more than 10% (5% when adjusted for the effects of portfolio changes and currency translations), increase underlying EBITDA by more than 10% and slightly improve the EBITDA margin.
'Bayer is not only on a successful course at present, we also see very attractive perspectives for the future,' Wenning concluded.