Bayer raises guidance after strong sales
pharmafile | July 31, 2012 | News story | Sales and Marketing | Bayer, Nexavar, Q2, Xarelto, Yasmin
The Bayer Group has raised its full-year guidance for 2012 following positive results in the second quarter.
This is despite net earnings being down 34% from €747 million a year ago to €494 million between April and June this year.
The German manufacturer said its record sales of €10.2 billion for the quarter were due in part to the weak euro helping its overseas activities – while the fall in earnings was largely the result of setting aside money to cover expected litigation costs.
Alhough pharma sales declined in western Europe, they were up 4.3% overall to €2.7 billion, with most growth coming from North America and China.
Sales of the anticoagulant Xarelto rose after new market launches and expanded indications to €68 million while revenue from cancer drug Nexavar was up 7.5 per cent.
Multiple sclerosis treatment Betaferon/Betaseron also did well, seeing a 10.2% increase in sales, partly due to a one-off effect in the US.
Sales of the hormone-releasing intrauterine device Mirena increased 26.7%, again because of a major US order.
It wasn’t all plain sailing for Bayer: sales of the Yasmin/Yasminelle oral contraceptives portfolio fell 6.4% as generic competition in Europe and North America bit into its market – although sales rose in Japan.
Bayer has ringfenced €496 million in this quarter for legal action relating to Yasmin in US cases involving blood clots.
Meanwhile sales of Bayer’s erectile dysfunction treatment Levitra also wilted markedly in the US, falling 16.9% overall.
Consumer health rose by 3.8% to €1.9 billion, with sales of skincare product Bepanthen/Bepanthol up 18.3% and the analgesic Aleve/naproxen up 10.1 per cent.
It all meant that healthcare sales overall were up 10% in the second quarter of 2012 to €4.63 billion, with emerging markets particularly strong.
“In view of the strong business performance, we are raising our guidance for the full year 2012,” said Bayer chairman Marijn Dekkers.
Pharma sales are now forecast to rise by a mid-single-digit percentage, whereas previously Bayer thought they would only match 2011’s sales.
The manufacturer said sales overall will be up 4-5%, beating its earlier forecast of 3% for the year, giving it sales of up to €40 billion, excluding currency changes.
Adam Hill
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