Bayer HealthCare
Our aim is to discover and manufacture innovative products that will improve human and animal health worldwide. Our products enhance well-being and quality of life by diagnosing, preventing and treating disease.
- Sales 2011: 17,169 Euro million
- Workforce: 55,700 worldwide
- Operating profit 2011: 3,191 Euro million
- Headquarters: Leverkusen, Germany
Divisions of Bayer HealthCare
| Management | Based in | |
|---|---|---|
| Animal Health | Dr. Jean-Luc Lowinski | Monheim, Germany |
| Pharmaceuticals | Andreas Fibig | Berlin, Germany |
| Consumer Care | Erica L. Mann | Morristown, USA |
| Medical Care | Alan Main | Tarrytown, New York, USA |
The Pharmaceuticals segment consists of two business units focusing on prescription products:
- General Medicine, primarily comprising women’s healthcare and cardiovascular health products; and
- Specialty Medicine, comprising medicines that are mainly prescribed by specialist physicians.
Our Consumer Health segment includes the Consumer Care, Medical Care and Animal Health divisions.
The main focus of the Consumer Care Division is on non-prescription medicines, dietary supplements and dermatology products.
Medical Care comprises the businesses with blood glucose meters, contrast-enhanced diagnostic imaging equipment together with the necessary contrast agents, and mechanical systems for treating constricted or blocked blood vessels.
The products of the Animal Health Division are destined for use in livestock and companion animals.
Sales 2011
Sales of the HealthCare subgroup grew by 1.5 percent in 2011, to € 17,169 million. Adjusted for currency and portfolio effects, sales rose by 2.4 percent. The Pharmaceuticals business posted an encouraging performance in the emerging markets, while some declines were recorded in Europe and North America. The Consumer Health business developed positively in all regions.| 2011 | 2010 | Change |
|
|---|---|---|---|
| € million | € million | % | |
| Bayer HealthCare | 17,169 | 16,913 | 1.5 |
| - Division Animal Health |
1,186 | 1,120 | 5.9 |
| - Division Consumer Care |
3,534 | 3,371 | 4.8 |
| - Division Medical Care |
2,500 | 2,468 | 1.3 |
| - Division Pharmaceuticals |
9,949 | 10,908 | -0.1 |
Performance 2011
In the fourth quarter of 2011, the Diagnostic Imaging strategic business entity was transferred from the
Specialty Medicine business unit (Pharmaceuticals segment) to the Medical Care Division (Consumer
Health segment). The figures for 2011 and 2010 have been restated accordingly to enhance comparability.
Sales of the Pharmaceuticals segment in 2011 came in at € 9,949 million, up 0.6 percent from the prior year after adjustment for currency and portfolio effects. Increases were achieved mainly in the Asia / Pacific and Latin America regions. Business in China developed particularly well. Sales in North America and Western Europe declined because of health system reforms and generic competition.
Sales in the General Medicine business unit climbed by 1.2 percent adjusted for currency and portfolio effects to € 6,875 million. Business with our hormone-releasing intrauterine device Mirena™ increased in all regions, especially in North America due to higher volumes. By expanding our marketing activities in China, we substantially increased sales of products such as Aspirin™ Cardio for prevention of myocardial infarction. Two products recently launched in Japan – Fosrenol™ to treat kidney disease and Zetia™ to reduce blood cholesterol – saw positive development. Sales of our oral diabetes medicine Glucobay™ rose, thanks to steady growth in China. In Europe and Japan, however, sales declined in the face of generic competition.
Sales of our erectile dysfunction treatment Levitra™ and our antibiotic Avalox™/ Avelox™ were markedly lower due to the partial restructuring of our distribution activities for general medicine products in the United States. In addition, Levitra™ had benefited in the preceding year from a contract signed with a major customer. On the other hand, the decline for Avalox™/ Avelox™ in the United States was largely offset by increases in the other regions, especially in China.
Sales of our YAZ™/ Yasmin™/ Yasminelle™ oral contraceptives receded, mainly because of generic competition for YAZ™ in the United States. However, business with this product line developed positively in Asia / Pacific, particularly Japan, and in Latin America / Africa / Middle East. Generic competition, especially in Canada and Japan, hampered business with Adalat™, our product to treat high blood pressure and coronary heart disease, while sales rose in China. The drop in sales of the antibiotic Cipro™/ Ciprobay™ in the United States was mainly due to the termination of a U.S. government contract in the previous year. We also registered lower sales in Japan and Europe due to generic competition.
Our innovative anticoagulant Xarelto™ registered sales of € 86 million. Indication expansions toward the end of the year did not yet have a significant effect.
In the Specialty Medicine business unit, sales edged down by 0.8 percent on a currency- and portfolio adjusted basis, to € 3,074 million. Sales of our multiple sclerosis drug Betaferon™/ Betaseron™ declined due to heightened competition and to price reductions occasioned by health system reforms, primarily in Europe. Our blood-clotting factor Kogenate™ recorded higher sales in all regions, especially on account of volume growth in Europe. The cancer drug Nexavar™ developed positively, chiefly as a result of higher volumes in the Asia / Pacific region for the treatment of liver cancer, which more than offset lower sales in Europe.
Sales of the Consumer Health segment in 2011 advanced by 5.1 percent adjusted for currency and portfolio effects to € 7,220 million, with all divisions and regions contributing to growth.
Sales in the Consumer Care Division advanced by 7.1 percent on a currency and portfolio adjusted basis, to € 3,534 million. Business with our analgesics Apirin™ and Aleve™/naproxen gained strongly, especially in the United States, benefiting from higher demand and the launch of the new, particularly fast-acting formulation Bayer™ Advanced Aspirin. Sales of our skincare product Bepanthen™/Bepanthol™ moved higher, largely as a result of a positive performance in Europe. Our antifungal Canesten™ also showed encouraging growth in all regions.
Sales of the Medical Care Division rose by a currency- and portfolio-adjusted 2.4 percent to € 2,500 million. Our Diabetes Care business expanded, driven by the Contour™ line of blood glucose meters. Sales of these systems rose in all regions, especially in Europe. Here we benefited from higher demand and new product introductions, particularly in Germany and the United Kingdom. Business with the X-ray contrast agent Ultravist™ developed favorably, especially in emerging markets such as China and Russia. Among our contrast agents for magnetic resonance imaging (MRI), sales of Magnevist receded, in the decline in Europe being partly the result of the switch to Gadovist™.
Sales in our Animal Health Division rose by 5.1 percent on a currency- and portfolio-adjusted basis, to € 1,186 million, with all regions contributing to growth. Business with our Advantage™ line of flea, tick and worm control products developed well in all regions, particularly Europe. Sales in the United States showed a further slight improvement following a strong year in 2010. Here we continued to benefit from the establishment of an additional distribution channel through pet-product retailers.
Research & Development 2011
In 2011 we invested € 1,948 million (2010: € 2,066 million) in research and development in the Pharmaceuticals and Consumer Health segments. This represented 66.4 percent of the Bayer Group’s entire research and development spending and was equivalent to 11.3 percent (2010: 12.2 percent) of HealthCare sales. At the end of 2011, some 7,700 employees of the HealthCare subgroup were working in research and development.
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