Bayer’s earnings beat estimates as blockbusters shine
pharmafile | April 26, 2016 | News story | Manufacturing and Production, Research and Development, Sales and Marketing | Bayer, Eylea, Q1, Xarelto, blockbusters, growth, results, sales
Bayer (FWB: BAYN) has reported a 15.7% rise in underlying core earnings for the first quarter of 2016, with prescription drugs like stroke prevention treatment Xarelto and anti-blindness drug Eylea heavily driving sales.
CEO Dr Marjin Dekkers, who’s set to be replaced by Werner Baumann within the next few weeks, says: “All segments posted gains in their operating performance. We confirm our outlook for 2016.”
The company performed strongly in the pharmaceuticals and animal health divisions of the company. Total sales of prescription medicines rose 12.2% to €3.8 billion. Xarelto, alone, generated total sales of €1.18 billion, with sales volumes increasing 31.5%. Dekkers adds: “This was largely attributable to the continued strong development of the company’s recently launched products.”
Sales also grew among more established products with blood-clotting medicine Kogenate posting gains after a weak quarter in the same period last year, while cancer drug Nexavar achieved sales gains of 10.8%.
In the pharmaceutical division, EBITDA before special items rose by 16.2% to €1.2 billion, which offset the higher investments in R&D and negative currency effects of around €30 million.
Overall, Q1 profit before interest, taxed, depreciation and amortisation (EDITDA) rose to €3.4 billion, beating market expectations of €3.07 billion. Overall sales of €11.9 billion, however, fell just short of analysts’ predictions of €12.1 billion.
Bayer has reaffirmed its outlook for the year, with sales expected to reach €35 billion across the group, excluding polymers manufacturers Covestro which recorded a fall in sales of 4.7%. The company also reiterated that it expected EBITDA before special items at its life sciences operations to grow by a mid-single-digit percentage this year.
At the time of writing, shares at Bayer had risen 0.5% on the Frankfurt Stock Exchange.
Sean Murray
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