(RTTNews) - Bayer AG (BAYRY.PK: News ,BAYZF.PK: News ) listed four drugs in its
late-stage development pipeline as having blockbuster potential. The German
conglomerate set its goal to successfully commercialize these and to take
advantage of business opportunities in emerging markets. The chemicals and
drugs group also revealed financial targets for 2014, expecting sales and
margin expansion in its life science businesses.
At an investor conference
Wednesday, CEO Marijn Dekkers said, "I am optimistic about Bayer's
medium-term development overall. -- The main reason why I'm optimistic for our
HealthCare subgroup is our well-stocked development pipeline in
Pharmaceuticals."
The company revealed the four
potential blockbuster medicines in development, which it expects can achieve
peak annual sales of 1 billion euros or more. These comprise anticoagulant
Xarelto, eye medicine VEGF Trap-Eye, and cancer drugs Alpharadin and
regorafenib. Xarelto alone is anticipated to have a peak sales potential of
more than 2 billion euros.
Bayer also aims to take
advantage of business opportunities in the emerging markets. In the emerging
markets as a whole - Asia (excluding Japan), Latin America, Eastern Europe,
Africa and the Middle East - pharmaceutical sales are expected to increase by
high-single-digit to low-double-digit percentages through 2014 on a
currency-adjusted basis.
The company expects sales of
Bayer HealthCare to reach about 20 billion euros in 2014, compared with 17.2
billion euros generated in 2011. The subgroup's underlying EBITDA margin,
before special items, is anticipated to increase to at least 28 percent from
27.4 percent in 2011.
Pharmaceuticals segment sales
are expected to rise to about 11.5 billion euros in 2014 from 9.9 billion euros
in 2011. EBITDA margin is anticipated to rise to more than 30 percent from 29.9
percent in 2011.
Consumer Health segment sales
are targeted to reach nearly 8.5 billion euros in 2014, compared to the 7.2
billion euros in 2011. Dekkers also expressed his confidence for the
CropScience business and said the sales are aimed to reach over 8 billion euros
by 2014, up from 7.3 billion euros last year. The company expects EBITDA margin
expansion for both these segments.
Bayer MaterialScience also
intends to further strengthen its leading position in the market and aims to achieve
volume gains in excess of the rate of global GDP growth, the company added.
On Frankfurt's Xetra, Bayer
shares are currently trading at 55.08 euros, down 0.99 percent, on a volume of
791 thousand shares.