Business Development by Segment

Pharmaceuticals

Key Data – Pharmaceuticals

 

 

Q1 2016

 

Q1 2017

 

Change

 

 

€ million

 

€ million

 

Reported %

Fx & p adj. %

2016 figures restated; Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted

1

For definition see Annual Report 2016, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Sales

 

3,889

 

4,263

 

+9.6

+7.4

Change in sales1

 

 

 

 

 

 

 

Volume

 

+12.7%

 

+7.8%

 

 

 

Price

 

−0.5%

 

−0.4%

 

 

 

Currency

 

−3.0%

 

+2.2%

 

 

 

Portfolio

 

0.0%

 

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

 

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

1,542

 

1,606

 

+4.2

+3.9

North America

 

989

 

1,073

 

+8.5

+4.9

Asia / Pacific

 

1,130

 

1,312

 

+16.1

+13.5

Latin America

 

228

 

272

 

+19.3

+11.0

EBITDA1

 

1,261

 

1,499

 

+18.9

 

Special items1

 

 

(3)

 

 

 

EBITDA before special items1

 

1,261

 

1,502

 

+19.1

 

EBITDA margin before special items1

 

32.4%

 

35.2%

 

 

 

EBIT1

 

698

 

1,219

 

+74.6

 

Special items1

 

(231)

 

(36)

 

 

 

EBIT before special items1

 

929

 

1,255

 

+35.1

 

Net cash provided by operating activities

 

734

 

973

 

+32.6

 

First quarter of 2017

Sales

Sales of Pharmaceuticals rose by an encouraging 7.4% (Fx & portfolio adj.) to €4,263 million in the first quarter of 2017. Our key growth products Xarelto™, Eylea™, Xofigo™, Stivarga™ and Adempas™ once again delivered strong performance, with their combined sales rising by 20.0% (Fx adj.) to €1,445 million (Q1 2016: €1,187 million). Our Pharmaceuticals business expanded in all regions on a currency-adjusted basis.

Best-Selling Pharmaceuticals Products

 

 

Q1 2016

 

Q1 2017

 

Change

 

 

€ million

 

€ million

 

Reported %

Fx adj.1 %

1

Fx adj. = currency-adjusted; for definition see Annual Report 2016, Chapter “Alternative Performance Measures Used by the Bayer Group.”

2

Marketing rights owned by an affiliate of Johnson & Johnson, U.S.A.

3

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

Xarelto™

 

617

 

751

 

+21.7

+19.6

of which U.S.A.2

 

86

 

86

 

.

.

Eylea™

 

372

 

446

 

+19.9

+19.3

of which U.S.A.3

 

0

 

0

 

.

.

Mirena™ product family

 

248

 

315

 

+27.0

+22.7

of which U.S.A.

 

169

 

219

 

+29.6

+24.8

Kogenate™ / Kovaltry™

 

296

 

275

 

−7.1

−8.5

of which U.S.A.

 

96

 

94

 

−2.1

−5.0

Nexavar™

 

213

 

207

 

−2.8

−5.7

of which U.S.A.

 

81

 

75

 

−7.4

−10.0

Adalat™

 

160

 

174

 

+8.8

+8.5

of which U.S.A.

 

1

 

0

 

−100.0

−98.9

Betaferon™ / Betaseron™

 

190

 

171

 

−10.0

−12.1

of which U.S.A.

 

100

 

94

 

−6.0

−9.3

YAZ™ / Yasmin™ / Yasminelle™

 

172

 

170

 

−1.2

−7.3

of which U.S.A.

 

40

 

20

 

−50.0

−52.3

Glucobay™

 

139

 

158

 

+13.7

+14.6

of which U.S.A.

 

1

 

1

 

.

−44.9

Aspirin™ Cardio

 

137

 

157

 

+14.6

+13.8

of which U.S.A.

 

0

 

0

 

.

.

Xofigo™

 

75

 

100

 

+33.3

+30.5

of which U.S.A.

 

50

 

62

 

+24.0

+18.7

Avalox™ / Avelox™

 

98

 

100

 

+2.0

+2.3

of which U.S.A.

 

0

 

3

 

.

.

Gadavist™ / Gadovist™

 

82

 

89

 

+8.5

+6.2

of which U.S.A.

 

27

 

27

 

.

−3.1

Ultravist™

 

71

 

84

 

+18.3

+18.0

of which U.S.A.

 

1

 

1

 

.

+16.4

Stellant™

 

70

 

78

 

+11.4

+7.6

of which U.S.A.

 

52

 

57

 

+9.6

+6.1

Total best-selling products

 

2,940

 

3,275

 

+11.4

+9.4

Proportion of Pharmaceuticals sales

 

76%

 

77%

 

 

 

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

 

704

 

739

 

 

 

Sales by product

  • Our oral anticoagulant Xarelto™ achieved strong sales growth, primarily due to an expansion of volumes in Europe and Japan. Our license revenues – recognized as sales – in the United States, where Xarelto™ is marketed by a subsidiary of Johnson & Johnson, matched the prior-year quarter.
  • We once again significantly expanded our business with the eye medicine Eylea™, with performance driven by higher sales volumes in Europe. Encouraging sales gains were also achieved in Canada and Japan.
  • We substantially increased sales of the hormone-releasing intrauterine devices of the Mirena™ product family (Mirena™, Kyleena™ und Jaydess™ / Skyla™), particularly in the United States, where we also benefited from the successful market launch of the new Kyleena™ intrauterine device.
  • Business with our Kogenate™ / Kovaltry™ blood-clotting medicines was down overall, largely due to fluctuations in the order volumes placed by our distribution partner.
  • We registered a decline in sales for our cancer drug Nexavar™, primarily due to higher competitive pressure in the United States and Europe.
  • Encouraging sales gains for Adalat™, our product for the treatment of hypertension and coronary heart disease, were mainly the result of increased volumes in China.
  • As expected, sales of our multiple sclerosis product Betaferon™ / Betaseron™ were lower than in the prior-year quarter due to reduced demand in Europe and the United States.
  • Business with our YAZ™ / Yasmin™ / Yasminelle™ line of oral contraceptives was down overall. Sales gains in Russia and China were insufficient to offset declines caused by intensified generic competition in the United States.
  • Substantial sales increases for our diabetes treatment Glucobay™ and our Aspirin™ Cardio product for the secondary prevention of heart attacks, as well as slight sales gains for our antibiotic Avalox™ / Avelox™ were largely the result of a favorable market environment in China.
  • Business with our cancer drug Xofigo™ increased significantly, driven by the successful launch of the product in Japan as well as growth in the United States and Europe.
  • Sales of our MRI contrast agent Gadovist™ advanced, mainly due to good business performance in Japan.
  • Substantial sales gains for our X-ray contrast agent Ultravist™ were primarily the result of positive business performance in China.
  • Business with our Stellant™ contrast agent injection system benefited from higher volumes, primarily in the United States.
  • Sales of our cancer drug Stivarga™ increased by 9.1% to €75 million (Q1 2016: 67 million), especially due to gains in the United States and Europe.
  • Sales of the pulmonary hypertension treatment Adempas™ amounted to €73 million (Q1 2016: €56 million; Fx adj. +27.5%) and, as in the past, reflected the proportionate recognition of the one-time payment resulting from the sGC collaboration with Merck & Co., United States. Business benefited mainly from a positive performance in the United States.

Earnings

In the first quarter of 2017, EBITDA before special items of Pharmaceuticals increased by a substantial 19.1% percent to €1,502 million (Q1 2016: €1,261 million). Sales increased, while selling expenses and research and development expenditures were at around the same level as the prior-year quarter. Positive currency effects amounted to around €15 million.

EBIT improved by a substantial 74.6% to €1,219 million, including special charges of €36 million (Q1 2016: €231 million).

Special Items1 Pharmaceuticals

 

 

EBIT
Q1 2016

EBIT
Q1 2017

 

EBITDA Q1 2016

EBITDA Q1 2017

 

 

€ million

€ million

 

€ million

€ million

1

For definition see Annual Report 2016, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Restructuring

 

(2)

(3)

 

(2)

(3)

Litigations

 

2

 

2

Impairment losses / impairment loss reversals

 

(231)

(33)

 

Total special items

 

(231)

(36)

 

(3)