You could get a headache trying to name all of Bayer's products.
The company, which created aspirin in 1897, makes prescription
products and works in oncology and radiology through its
Pharmaceuticals division; OTC products like Claritin and Canesten
via its Consumer Health division; and crop protection and pest
control via its Crop Science division. Its top selling
pharmaceuticals include oral anticoagulent Xarelto and
blood-clotting medicine Kogenate. Bayer also operates an animal
health business unit; its top-seller is Advantage, a flea medicine.
Also known as Bayer Group, the firm has some 300 operating
subsidiaries worldwide; it operates in the US through Bayer
Corporation. The company spun off its material science division in
2015, but retains 69% ownership.
Pharmaceuticals, the largest segment by revenue at around a
third, deals in prescription products, especially for women's
health care and cardiology, and on specialty therapeutics in the
areas of oncology, hematology, and opthamology.
The Consumer Health business includes consumer care and medical
care, and makes primarily non-prescription and OTC medicines,
supplements, and dermatology products, such as Aspirin (for which
it owns the trademark in 80 countries), Berocca and Aleve. In 2016
it completed the sale of its Diabetes Care unit to Panasonic
The Crop Science segment does business in seeds, crop
protection, and non-agricultural pest control, and accounted for
22% of revenue in 2015. In 2016, Bayer made a record $62 billion
takeover bid for Monsanto, the American GM crop producer.
Covestro develops and markets high-tech polymer materials and
specialty chemicals; it also makes inorganic base chemicals. Its
operating units are polyurethanes, polycarbonates, and coatings,
adhesives, and specialties. It accounted for 30% of revenue in
The company also operates an animal health business.
Europe is Bayer's largest region, at about a third of sales, but
the company also generates significant revenue in North American
and the Asia-Pacific region. Most of the company's core
manufacturing facilities are in Germany and the US. The company
also has operations Latin America, Africa, and the Middle East.
The Bayer Group comprises about 300 consolidated companies
operating in 77 countries around the world.
Sales and Marketing
Pharmaceuticals products are distributed primarily through
wholesalers, hospitals, and pharmacy chains, while Crop Science
products are sold through wholesalers and regional distributors.
The Consumer Health division's well-known and established brands
are sold through major supermarket chains and pharmacies.
Note: Growth rates may differ after conversion to US
The company recorded its fifth consecutive year of sales growth
in 2015: revenue grew 12% to €46.3 billion on the back of higher
sales and earnings growth. Consumer Heath grew across all its
divisions, with HealthCare in particular showing strong growth. In
the Pharmaceuticals segment, the Xarelto, Eylea, Stivarga, Xofigo
and Adempas brands added €1.3 billion to sales in prior year and
helped the company overcome declining prices. These brands are
doing especially well in Germany, Japan and the US.
Net income grew 20% to €4.1 billion, despite special charges
nearly doubling to €819 million mostly as a result of integration
and re-structuring costs. These costs were offset to an extent by a
favorable litigation settlement with Dow AgroSciences to the sum of
Cash from continuing operations climbed 4.4% in 2015 to €7.0
Net income of €4.1 billion was 20% higher on prior year mostly
due to an increase in sales.
In 2015 Bayer undertook steps to realign itself as purely a life
sciences company, or one that works in biology, be it
pharmaceuticals, biomedical technologies or plant science, among
other things. Bayer floated Covestro, its materials science
division (2015 revenue €12 billion), on the stock market as a fully
independent company in September 2015 (although Bayer Group retains
69% ownership). SeedWorks India was acquired in July 2015 to
strengthen Bayer's position in the vegetable seed business in
India. Radiology joined Pharmaceuticals, making Consumer Health
consist entirely of the consumer care business. The lagging
Diabetes Care business was sold to Panasonic for around €1 billion
for financial reasons.
Bayer has substantially upped its R&D spend, nearly tripling
it since 2011 to €4.3 billion.
Bayer hopes that an expanding global population, expected to
reach 9.7 billion by 2050, will rapidly expand the demand for GM
foods as a solution to difficult agriculture conditions. In
mid-2016, the company launched an ambitious $63 billion takeover
bid for US GM-food company Monsanto, which would help Bayer makes
gains in GM-resistant Europe. Historically, GM foods have been
produced almost exclusively in the US. The acquisition would bring
Crop Sciences to almost half of Bayer revenue.
Shortly following the bid for Monsanto, the company agreed to
sell its consumer crop protection to French crop protection firm
SBM Developpement to focus on commercial crop protection.
Mergers and Acquisitions
Acquisition activity was down substantially to almost nil in
2015, after a busy 2014 (€8 million vs €13,741 million). In 2015,
Bayer bought Thermoplast Composite to expand its range of
polycarbonate materials. It also bought SeedWorks India to
strengthen its vegetable seed business in the territory.
Acquisitions in 2014 in the health arena include the purchase of
Merck's consumer care business, which brought well-known brands
including Claritin, MiraLAX, Coppertone, and Dr. Scholl's under the
Bayer umbrella. The company paid about $14.2 billion for the deal
and moved into second place globally among OTC companies, between a
Novartis-GlaxoSmithKline joint venture and Johnson &
Bayer also bought dermatology product specialist Dihon
Pharmaceutical Group in China and former cancer drug Xofigo partner
Algeta in Norway. CropScience purchases included Argentina's Biagro
group (organic seed treatments and crop protection products) and
the seed business of Paraguayan firm Granar. Altogether, the
company spent €13.5 billion on acquisitions in 2014.