Bayer AG reported strong second-quarter performance, with group sales reaching €11.1 billion ($12.2 billion), exceeding analyst expectations. The pharmaceutical division emerged as a key driver, posting a 4.5% increase in sales to €4.61 billion, despite overall earnings declining 16.5% to €2.11 billion due to restructuring costs.
Key Product Performance
Two emerging therapies demonstrated exceptional growth trajectories. Kerendia (finerenone), indicated for chronic kidney disease, saw sales surge 73% to €115 million, while prostate cancer treatment Nubeqa (darolutamide) experienced a remarkable 90% growth to €380 million. Both medications are positioned for potential expansion, with recent positive Phase 3 trial data supporting new indications that could push annual sales beyond €3 billion each.
The company's ophthalmology franchise maintained its strength, with Eylea (aflibercept) achieving 8% growth to €834 million, despite increasing competition from biosimilars and newer treatments. However, Bayer's leading pharmaceutical product, the anticoagulant Xarelto (rivaroxaban), continued to face pressure from generic competition, with sales declining nearly 11% to €904 million.
Strategic Transformation Under New Leadership
CEO Bill Anderson, who joined Bayer to stabilize operations following challenges including patent expirations, litigation issues, and organizational inefficiencies, reported significant progress in the company's transformation. The pharmaceutical division has strengthened its pipeline through strategic developments, including advancement of late-stage assets such as elinzanetant for menopause symptoms and acoramidis for ATTR cardiomyopathy, both anticipated to reach the market next year.
Cost Optimization and Organizational Restructuring
Bayer's cost reduction initiatives have gained momentum, with job cuts more than doubling from 1,500 at the end of Q1 to 3,200. The restructuring includes a 10% reduction in senior management positions, approximately 300 roles, aligning with Anderson's strategy to streamline management layers. The company remains on track to achieve its targeted cost savings of €500 million in 2023 and €2 billion by 2026.
Revised Outlook
Following the strong performance, Bayer has upgraded its pharmaceutical division's growth forecast to 0%-3% for the year, improving from the previous projection of -4%-0%. This positive revision mirrors similar upgrades by other European pharmaceutical companies, including AstraZeneca, GSK, Roche, and Sanofi, reflecting a broader industry trend of strong first-half performance.
