DUBLIN, April 26, 2016 /PRNewswire/ --
Bayer AG has reported first-quarter profits of USD 3.83 billion before interest, taxes, depreciation and amortization. The earnings are the result of a strong market performance from the German multinational's best-selling drugs Xarelto and Eylea, drugs Bayer is banking on to spur growth in the coming years. Xarelto's patent expiration date was extended by four years this week to Aug 28, 2024. The global pharmaceuticals market is expected to reach a value of USD 1,147.1 billion by 2019, according to a report available from Research and Markets, providing Bayer with a strong market for increased sales.
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Bayer was reorganized into three divisions on Jan 1 2016 to facilitate a focus on developing new drugs. In addition to its pharmaceuticals, consumer health and crop sciences divisions, Bayer also operates an animal health unit, but the company recently indicated that it would either bolster the unit with deals or sell it. The global animal health market is forecast to grow at a CAGR of 3.96% by 2019, according to an industry report, providing Bayer with a stable market should it decide to expand its animal health offerings.
Bayer's reshaping in 2014 by outgoing CEO Marijn Dekkers, who will be replaced by chief of strategy Werner Baumann, is believed to have contributed to Bayer's present success. Dekkers was responsible for the acquisition of Merck & Co.'s over-the-counter drugs branch, a move that expanded Bayer's market reach. A recent industry report noted that while the OTC drugs market remains highly competitive, leading companies can consolidate their market position through strategic acquisitions.
Bayer's first-quarter profits rose company shares by 1.9% to EUR 111.75 in Frankfurt trading, giving Germany's biggest company a market value of EUR 92.4 billion. Bayer's stock had declined by 5% this year before the profit postings.
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SOURCE Research and Markets