Business Development by Segment

Pharmaceuticals

Key Data – Pharmaceuticals

 

 

Q1 2017

 

Q1 2018

 

Change1

 

 

€ million

 

€ million

 

Reported %

Fx & p adj. %

Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted

1

For definition see Annual Report 2017, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Sales

 

4,263

 

4,075

 

−4.4

+2.9

Change in sales1

 

 

 

 

 

 

 

Volume

 

+7.8%

 

+5.7%

 

 

 

Price

 

−0.4%

 

−2.8%

 

 

 

Currency

 

+2.2%

 

−7.1%

 

 

 

Portfolio

 

0.0%

 

−0.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

 

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

1,606

 

1,611

 

+0.3

+2.6

North America

 

1,073

 

923

 

−14.0

−3.0

Asia / Pacific

 

1,312

 

1,303

 

−0.7

+7.7

Latin America

 

272

 

238

 

−12.5

+2.6

EBITDA1

 

1,499

 

1,414

 

−5.7

 

Special items1

 

(3)

 

(1)

 

 

 

EBITDA before special items1

 

1,502

 

1,415

 

−5.8

 

EBITDA margin before special items1

 

35.2%

 

34.7%

 

 

 

EBIT1

 

1,219

 

1,163

 

−4.6

 

Special items1

 

(36)

 

(1)

 

 

 

EBIT before special items1

 

1,255

 

1,164

 

−7.3

 

Net cash provided by operating activities

 

973

 

1,232

 

+26.6

 

First quarter of 2018

Sales

Sales of Pharmaceuticals increased by 2.9% (Fx & portfolio adj.) to €4,075 million in the first quarter of 2018. Our key growth products Xarelto™, Eylea™, Xofigo™, Stivarga™ and Adempas™ once again delivered strong performance overall, with their combined sales rising by 14.1% (Fx adj.) to €1,561 million (Q1 2017: €1,445 million). Combined sales of the 15 best-selling Pharmaceuticals products advanced by 5.8% (Fx adj.). We registered a noticeable decline in sales of Kogenate™ that resulted from the termination of an agreement with a distribution partner at the end of 2017. After adjusting for this effect, sales of Pharmaceuticals rose by 4.6% (Fx & portfolio adj.). In addition, temporary supply disruptions for some of our established products had a negative impact on sales, as expected.

Best-Selling Pharmaceuticals Products

 

 

Q1 2017

 

Q1 2018

 

Change1

 

 

€ million

 

€ million

 

Reported %

Fx adj. %

Fx adj. = currency-adjusted

1

For definition see Annual Report 2017, Chapter “Alternative Performance Measures Used by the Bayer Group.”

2

Marketing rights owned by a subsidiary of Johnson & Johnson, U.S.A.; transactional effects had a negative impact of €12 million.

3

Marketing rights owned by Regeneron Pharmaceuticals Inc., U.S.A.

Xarelto™

 

751

 

814

 

+8.4

+13.0

of which U.S.A.2

 

86

 

83

 

−3.5

−2.7

Eylea™

 

446

 

504

 

+13.0

+19.2

of which U.S.A.3

 

0

 

0

 

.

.

Xofigo™

 

100

 

92

 

−8.0

+2.0

of which U.S.A.

 

62

 

51

 

−17.7

−3.9

Adempas™

 

73

 

81

 

+11.0

+21.2

of which U.S.A.

 

38

 

37

 

−2.6

+14.8

Stivarga™

 

75

 

70

 

−6.7

+3.3

of which U.S.A.

 

39

 

29

 

−25.6

−12.3

Subtotal key growth products

 

1,445

 

1,561

 

+8.0

+14.1

Mirena™ product family

 

315

 

317

 

+0.6

+13.4

of which U.S.A.

 

219

 

224

 

+2.3

+18.2

Kogenate™ / Kovaltry™

 

275

 

214

 

−22.2

−15.9

of which U.S.A.

 

94

 

80

 

−14.9

−1.5

Adalat™

 

174

 

176

 

+1.1

+9.0

of which U.S.A.

 

0

 

0

 

.

.

Glucobay™

 

158

 

168

 

+6.3

+13.7

of which U.S.A.

 

1

 

0

 

.

.

Nexavar™

 

207

 

162

 

−21.7

−14.3

of which U.S.A.

 

75

 

43

 

−42.7

−34.0

YAZ™ / Yasmin™ / Yasminelle™

 

170

 

152

 

−10.6

−1.8

of which U.S.A.

 

20

 

15

 

−25.0

−13.3

Aspirin™ Cardio

 

157

 

148

 

−5.7

+1.1

of which U.S.A.

 

0

 

0

 

.

.

Betaferon™ / Betaseron™

 

171

 

130

 

−24.0

−16.5

of which U.S.A.

 

94

 

58

 

−38.3

−28.8

Avalox™ / Avelox™

 

100

 

97

 

−3.0

+3.6

of which U.S.A.

 

3

 

3

 

.

.

Gadavist™ / Gadovist™

 

89

 

87

 

−2.2

+4.7

of which U.S.A.

 

27

 

25

 

−7.4

+6.9

Total best-selling products

 

3,261

 

3,212

 

−1.5

+5.8

Proportion of Pharmaceuticals sales

 

76%

 

79%

 

 

 

Total best-selling products in U.S.A.

 

758

 

648

 

−14.5

−3.4

Sales by product

  • Sales of our oral anticoagulant Xarelto™ increased markedly again, due particularly to expanded volumes in Europe and Asia / Pacific. Our license revenues – recognized as sales – in the United States, where Xarelto™ is marketed by a subsidiary of Johnson & Johnson, were down year on year.
  • Business with our eye medicine Eylea™ expanded strongly, primarily due to higher volumes in Europe.
  • We registered a slight increase in sales of our cancer drug Xofigo™. Higher demand in Japan and Europe more than offset the decline in the United States.
  • Sales of our pulmonary hypertension treatment Adempas™ rose strongly due primarily to positive development in the United States and Europe and, as in the past, reflected the proportionate recognition of the upfront and milestone payments resulting from the sGC collaboration with Merck & Co., United States.
  • We posted growth in sales of our cancer drug Stivarga™ that was attributable to expanded volumes in Japan and China, where we benefited from the market launches in previous years. By contrast, sales declined significantly in the United States as a result of competitive pressure.
  • Sales of the hormone-releasing intrauterine devices of the Mirena™ product family (Mirena™, Kyleena™ and Jaydess™ / Skyla™) rose considerably, especially in the United States, where the successful launch of Kyleena™ continued to have a positive impact.
  • Business with our Kogenate™ / Kovaltry™ blood-clotting medicines was negatively impacted by the termination of an agreement with a distribution partner at the end of 2017. Adjusted for this effect, sales climbed 11.1% (Fx adj.).
  • The marked rise in sales of our diabetes treatment Glucobay™ and of Adalat™, our product for the treatment of hypertension and coronary heart disease, was mainly attributable to the expansion of volumes in China.
  • We registered a significant decline in sales of our cancer drug Nexavar™ that was mainly the result of lower demand in the United States.
  • Sales of our YAZ™ / Yasmin™ / Yasminelle™ line of oral contraceptives moved back, due chiefly to generic competition in Europe and the United States. Business developed positively in Japan and China.
  • We posted a slight increase in sales of our Aspirin™ Cardio product for the secondary prevention of heart attacks, primarily due to the continuation of our good business performance in China. Slightly lower volumes in Europe had an opposing effect.
  • Business with our multiple sclerosis product Betaferon™ / Betaseron™ moved back significantly, as expected. This was mainly due to the highly competitive market environment in the United States.
  • We posted an increase in sales of our antibiotic Avalox™ / Avelox™ that resulted particularly from the good development of business in China.
  • Sales of our MRI contrast agent Gadavist / Gadovist™ rose, especially in the United States.

Earnings

EBITDA before special items of Pharmaceuticals declined by 5.8% to €1,415 million in the first quarter of 2018 (Q1 2017: €1,502 million). Adjusted for negative currency effects in the amount of €69 million, earnings were down by 1.2%. This decline was driven by a higher cost of goods sold, primarily due to higher project costs in connection with capital expenditures for production facilities, as well as an increase in research and development expenses and higher selling expenses. By contrast, positive earnings contributions primarily came from a significant expansion of volumes, particularly for our key growth products.

EBIT decreased by 4.6% to €1,163 million, after special charges of €1 million (Q1 2017: €36 million).

Special Items1 Pharmaceuticals

 

 

EBIT
Q1 2017

EBIT
Q1 2018

 

EBITDA Q1 2017

EBITDA Q1 2018

 

 

€ million

€ million

 

€ million

€ million

1

For definition see Annual Report 2017, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Restructuring

 

(3)

(1)

 

(3)

(1)

Impairment losses / reversals

 

(33)

 

Total special items

 

(36)

(1)

 

(3)

(1)

Compare to Last Year