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Bayer HealthCare
 Pharmaceuticals |
| Consumer Health |
| Bayer HealthCare | 2006 | 2007 | Change |
| € million | € million | % | |
| Sales | 11,724 | 14,807 | +26.3 |
| Pharmaceuticals | 7,478 | 10,267 | +37.3 |
| Consumer Health | 4,246 | 4,540 | +6.9 |
| Sales by Region | |||
| Europe | 4,737 | 6,184 | +30.5 |
| North America | 3,689 | 4,439 | +20.3 |
| Asia/Pacific | 1,649 | 2,023 | +22.7 |
| Latin America/Africa/Middle East | 1,649 | 2,161 | +31.0 |
| EBITDA1 | 1,947 | 3,065 | +57.4 |
| Special items | (666) | (727) | |
| EBITDA before special items2 | 2,613 | 3,792 | +45.1 |
| EBITDA margin before special items | 22.3% | 25.6% | |
| EBIT1 | 1,313 | 1,564 | +19.1 |
| Special items | (402) | (928) | |
| EBIT before special items2 | 1,715 | 2,492 | +45.3 |
| Gross cash flow1 | 1,720 | 2,389 | +38.9 |
| Net cash flow1 | 1,526 | 2,010 | +31.7 |
1 for definition see Bayer Group Key Data
2 for definition see also Calculation of EBIT(DA) Before Special Items
2 for definition see also Calculation of EBIT(DA) Before Special Items
Sales of the HealthCare subgroup grew by 26.3 percent in 2007, to €14,807 million. The acquired business of Schering AG, Berlin, Germany, is included in this figure on a full-year basis (2006: June 23 – December 31). Adjusted for currency and portfolio effects, sales climbed by 7.3 percent. The increase was due to the positive business performance of both segments.
EBITDA before special items of Bayer HealthCare advanced by 45.1 percent in 2007 to €3,792 million (2006: €2,613 million). This increase was attributable to the gratifying business performance in all divisions, the full-year inclusion of Schering and the integration synergies already achieved. EBIT before special items came in at €2,492 million, which was also a considerable increase against the previous year’s figure of €1,715 million. The net special charges of €928 million resulted primarily from expenses relating to the Schering integration and from a write-down of intangible assets in connection with negative results from the BEYOND study on
Betaferon®/Betaseron®. EBIT rose by €251 million, or 19.1 percent, to €1,564 million.
EBITDA before special items of Bayer HealthCare advanced by 45.1 percent in 2007 to €3,792 million (2006: €2,613 million). This increase was attributable to the gratifying business performance in all divisions, the full-year inclusion of Schering and the integration synergies already achieved. EBIT before special items came in at €2,492 million, which was also a considerable increase against the previous year’s figure of €1,715 million. The net special charges of €928 million resulted primarily from expenses relating to the Schering integration and from a write-down of intangible assets in connection with negative results from the BEYOND study on
Betaferon®/Betaseron®. EBIT rose by €251 million, or 19.1 percent, to €1,564 million.Pharmaceuticals
| Pharmaceuticals | 2006 | 2007 | Change |
| € million | € million | % | |
| Sales | 7,478 | 10,267 | +37.3 |
| Primary Care1 | 3,091 | 3,055 | -1.2 |
| Women’s Healthcare2 | 1,320 | 2,630 | • |
| Diagnostic Imaging (including Medrad)2 | 697 | 1,298 | • |
| Specialized Therapeutics2 | 678 | 1,253 | • |
| Hematology/Cardiology | 1,142 | 1,033 | -9.5 |
| Oncology3 | 432 | 754 | • |
| Dermatology (Intendis)2 | 118 | 244 | • |
| Sales by Region | |||
| Europe | 3,046 | 4,367 | +43.4 |
| North America | 2,226 | 2,862 | +28.6 |
| Asia/Pacific | 1,313 | 1,659 | +26.4 |
| Latin America/Africa/Middle East | 893 | 1,379 | +54.4 |
| EBITDA4 | 1,051 | 2,108 | • |
| Special items | (635) | (699) | |
| EBITDA before special items5 | 1,686 | 2,807 | +66.5 |
| EBITDA margin before special items | 22.5% | 27.3% | |
| EBIT4 | 563 | 741 | +31.6 |
| Special items | (371) | (900) | |
| EBITDA before special items5 | 934 | 1,641 | +75.7 |
| Gross cash flow4 | 1,086 | 1,685 | +55.2 |
| Net cash flow4 | 1,053 | 1,451 | +37.8 |
1 Schering andrology business included in 2006 pro rata temporis
2 Schering sales included in 2006 pro rata temporis
3 Schering oncology business included in 2006 pro rata temporis
4 for definition see Bayer Group Key Data
5 for definition see also Calculation of EBIT(DA) Before Special Items
2 Schering sales included in 2006 pro rata temporis
3 Schering oncology business included in 2006 pro rata temporis
4 for definition see Bayer Group Key Data
5 for definition see also Calculation of EBIT(DA) Before Special Items
Sales of our Pharmaceuticals segment climbed by 37.3 percent in 2007, to €10,267 million (2006: €7,478 million). This figure contains €5,921 million (2006: €3,082 million pro-rated) in sales of the Schering business. Adjusted for portfolio and currency changes, sales were up by 5.7 percent.
| Best-Selling Pharmaceutical Products | 2006 | 2007 | Change | Currency-adjusted change |
| € million | € million | % | % | |
| Yasmin®/YAZ®/Yasminelle® * (Women’s Healthcare) | 451 | 1,042 | • | • |
| Betaferon®/Betaseron® * (Specialized Therapeutics) | 535 | 1,028 | • | • |
| Kogenate® (Hematology/Cardiology) | 787 | 818 | +3.9 | +7.7 |
| Adalat® (Primary Care) | 657 | 614 | -6.5 | -1.5 |
| Avalox®/Avelox® (Primary Care) | 396 | 445 | +12.4 | +16.8 |
| Cipro®/Ciprobay® (Primary Care) | 513 | 383 | -25.3 | -22.8 |
| Mirena® * (Women’s Healthcare) | 166 | 361 | • | • |
| Levitra® (Primary Care) | 314 | 332 | +5.7 | +10.6 |
| Magnevist® * (Diagnostic Imaging) | 171 | 301 | • | • |
| Glucobay® (Primary Care) | 308 | 298 | -3.2 | +1.2 |
| Nexavar® (Oncology) | 130 | 270 | +107.7 | +116.2 |
| Ultravist® * (Diagnostic Imaging) | 86 | 235 | • | • |
| Aspirin Cardio® (Primary Care) | 209 | 229 | +9.6 | +13.1 |
| Iopamiron® * (Diagnostic Imaging) | 117 | 211 | • | • |
| Diane® * (Women’s Healthcare) | 88 | 175 | • | • |
| Total | • | 6,742 | • | • |
| Proportion of Pharmaceuticals sales | • | 66% |
Products are ranked by full year 2007 sales.
* acquired Schering product, sales included in 2006 pro rata temporis
* acquired Schering product, sales included in 2006 pro rata temporis
The 2006 sales figures include the acquired business of Schering for the period June 23 through December 31, 2006. The commentaries given below on business developments related to the acquired Schering AG products are based in part on Schering data for the first half of 2006 that do not form part of the Bayer Group financial statements. We therefore refer to the sales figures for these products as “pro forma.”
| Best-Selling Schering Products (pro forma) | 2006 | 2007 | Change | Currency- adjusted change |
| € million | € million | % | % | |
| Yasmin®/YAZ®/Yasminelle® (Women’s Healthcare) | 794 | 1,042 | +31.2 | +37.3 |
| Betaferon®/Betaseron® (Specialized Therapeutics) | 991 | 1,028 | +3.7 | +6.5 |
| Mirena® (Women’s Healthcare) | 301 | 361 | +19.9 | +25.2 |
| Magnevist® (Diagnostic Imaging) | 323 | 301 | -6.8 | -1.3 |
| Ultravist® (Diagnostic Imaging) | 222 | 235 | +5.9 | +8.5 |
| Iopamiron® (Diagnostic Imaging) | 221 | 211 | -4.5 | +3.4 |
| Diane® (Women’s Healthcare) | 175 | 175 | 0.0 | +0.7 |
Sales of the Primary Care business unit dipped 1.2 percent in 2007, to €3,055 million (2006: €3,091 million). We significantly expanded sales of Avalox®/Avelox® (currency-adjusted: +16.8 percent), Aspirin Cardio® (currency-adjusted: +13.1 percent) and Levitra® (currency-adjusted: +10.6 percent). By contrast, sales of Cipro®/Ciprobay® (currency-adjusted: -22.8 percent) and Adalat® (currency-adjusted: -1.5 percent ) were down as expected due to generic competition, while business with Glucobay® was at the previous year’s level (+1.2 percent) on a currency-adjusted basis. Sales of Primary Care included €72 million in business with the andrology products acquired from Schering (2006: €31 million pro-rated). Currency- and portfolio-adjusted sales edged up by 1.8 percent year on year.
The Women’s Healthcare business unit continued to develop very positively, posting sales of €2,630 million (2006: €1,320 million pro-rated). The principal growth drivers were the oral contraceptives of theYasmin®/YAZ®/Yasminelle® family, which became our best-selling pharmaceutical product in 2007 with sales of €1,042 million. Sales of Yasmin®/YAZ®/Yasminelle® expanded by 37.3 percent (pro forma) on a currency-adjusted basis. Market introductions of YAZ® and Yasminelle® in various regions contributed significantly to this growth. Sales of the intra-uterine system Mirena® advanced by a pleasing 25.2 percent (pro forma) on a currency-adjusted basis, largely because of strong growth in the United States.
In the Diagnostic Imaging business unit, we had sales of €1,298 million (2006: €697 million pro-rated). Growth came mainly from the Medrad business and the stepwise relaunch of the 370 mgI/ml formulation ofUltravist®, which we had voluntarily withdrawn from the market in summer 2006. Total sales of Ultravist® moved ahead by 8.5 percent (pro forma) when adjusted for the effects of currency translation.
Sales of the Specialized Therapeutics business unit amounted to €1,253 million (2006: €678 million pro-rated). Business with Betaferon®/Betaseron® to treat multiple sclerosis (MS) expanded by 6.5 percent (pro forma) on a currency-adjusted basis. In September 2007, we acquired from Novartis a production facility for biotechnological products in Emeryville, California, where Bayer manufactures Betaseron®. Due to negative results from the BEYOND study, we decided against a regulatory filing for the 500 mcg dose of Betaferon®/Betaseron®.
Sales of the Hematology/Cardiology business unit were down by 9.5 percent to €1,033 million (2006: €1,142 million). Currency- and portfolio-adjusted sales, however, rose by 3.1 percent. Business withKogenate®, which received an expanded registration from the European Commission in January 2007, continued to develop positively, with a currency-adjusted 7.7 percent increase. Currency-adjusted sales of Trasylol®, our product to control bleeding during coronary bypass surgery, declined by a substantial 28.4 percent. In November 2007, Bayer suspended worldwide marketing of Trasylol® for the time being after preliminary results of an independent clinical study conducted in Canada indicated the possibility of an increased mortality risk for patients treated with Trasylol®. Marketing of the product will remain suspended until final results from the Canadian trial have been evaluated and the benefit-risk profile of Trasylol® can be reassessed together with the regulatory authorities.
Our Oncology business unit increased sales to €754 million (2006: €432 million). This figure contains €424 million (2006: €238 million pro-rated) in sales of the former Schering oncology business, including key productsFludara® and Campath®. Marketing authorization for Campath®/MabCampath®, which was jointly developed with Genzyme Corp. for the treatment of patients with B-cell chronic lymphocytic leukemia (B-CLL), was expanded in the United States in September 2007 and in the European Union at the end of December 2007. Currency- and portfolio-adjusted sales of the Oncology business unit improved by 33.7 percent, due particularly to the outstanding growth in business with our cancer drug Nexavar®, currency-adjusted sales of which jumped by 116.2 percent. In addition to its registration for the treatment of kidney cancer, Nexavar® was registered in the fall of 2007 in both Europe and the United States as the first medicine to treat liver cancer. Nexavar®, jointly developed by Bayer HealthCare and Onyx Pharmaceuticals, Inc., is the first product demonstrated to significantly extend overall survival in patients suffering from liver cancer.
The Dermatology (Intendis) business unit achieved sales of €244 million (2006: €118 million pro-rated). On a currency-adjusted basis, pro-forma sales of the two leading productsSkinoren® and Advantan® rose by 11.0 and 5.6 percent, respectively.
EBITDA before special items for Pharmaceuticals in 2007 advanced by 66.5 percent to €2,807 million (2006: €1,686 million). EBIT before special items rose by €707 million, or 75.7 percent, to €1,641 million. The net special charges of €900 million largely comprise expenses associated with the integration of Schering. Also included in this figure are a €152 million write-down of intangible assets necessitated by the results of the BEYOND study on Betaferon®/Betaseron® and provisions recorded in connection with the suspension of marketing for Trasylol®. EBIT moved ahead by 31.6 percent to €741 million.
Avelox® (currency-adjusted: +16.8 percent), Aspirin Cardio® (currency-adjusted: +13.1 percent) and Levitra® (currency-adjusted: +10.6 percent). By contrast, sales of Cipro®/Ciprobay® (currency-adjusted: -22.8 percent) and Adalat® (currency-adjusted: Glucobay® was at the previous year’s level (+1.2 percent) on a currency-adjusted basis. Sales of Primary Care included €72 million in business with the andrology products acquired from Schering (2006: €31 million pro-rated). Currency- and portfolio-adjusted sales edged up by 1.8 percent year on year. The Women’s Healthcare business unit continued to develop very positively, posting sales of €2,630 million (2006: €1,320 million pro-rated). The principal growth drivers were the oral contraceptives of the
Yasmin®/YAZ®/Yasminelle® family, which became our best-selling pharmaceutical product in 2007 with sales of €1,042 million. Sales of Yasmin®/YAZ®/Yasminelle® expanded by 37.3 percent (pro forma) on a currency-adjusted basis. Market introductions of YAZ® and Yasminelle® in various regions contributed significantly to this growth. Sales of the intra-uterine system Mirena® advanced by a pleasing 25.2 percent (pro forma) on a currency-adjusted basis, largely because of strong growth in the United States. In the Diagnostic Imaging business unit, we had sales of €1,298 million (2006: €697 million pro-rated). Growth came mainly from the Medrad business and the stepwise relaunch of the 370 mgI/ml formulation of
Ultravist®, which we had voluntarily withdrawn from the market in summer 2006. Total sales of Ultravist® moved ahead by 8.5 percent (pro forma) when adjusted for the effects of currency translation. Sales of the Specialized Therapeutics business unit amounted to €1,253 million (2006: €678 million pro-rated). Business with Betaferon®/Betaseron® to treat multiple sclerosis (MS) expanded by 6.5 percent (pro forma) on a currency-adjusted basis. In September 2007, we acquired from Novartis a production facility for biotechnological products in Emeryville, California, where Bayer manufactures Betaseron®. Due to negative results from the BEYOND study, we decided against a regulatory filing for the 500 mcg dose of Betaferon®/Betaseron®.
Sales of the Hematology/Cardiology business unit were down by 9.5 percent to €1,033 million (2006: €1,142 million). Currency- and portfolio-adjusted sales, however, rose by 3.1 percent. Business with
Kogenate®, which received an expanded registration from the European Commission in January 2007, continued to develop positively, with a currency-adjusted 7.7 percent increase. Currency-adjusted sales of Trasylol®, our product to control bleeding during coronary bypass surgery, declined by a substantial 28.4 percent. In November 2007, Bayer suspended worldwide marketing of Trasylol® for the time being after preliminary results of an independent clinical study conducted in Canada indicated the possibility of an increased mortality risk for patients treated with Trasylol®. Marketing of the product will remain suspended until final results from the Canadian trial have been evaluated and the benefit-risk profile of Trasylol® can be reassessed together with the regulatory authorities.Our Oncology business unit increased sales to €754 million (2006: €432 million). This figure contains €424 million (2006: €238 million pro-rated) in sales of the former Schering oncology business, including key products
Fludara® and Campath®. Marketing authorization for Campath®/MabCampath®, which was jointly developed with Genzyme Corp. for the treatment of patients with B-cell chronic lymphocytic leukemia (B-CLL), was expanded in the United States in September 2007 and in the European Union at the end of December 2007. Currency- and portfolio-adjusted sales of the Oncology business unit improved by 33.7 percent, due particularly to the outstanding growth in business with our cancer drug Nexavar®, currency-adjusted sales of which jumped by 116.2 percent. In addition to its registration for the treatment of kidney cancer, Nexavar® was registered in the fall of 2007 in both Europe and the United States as the first medicine to treat liver cancer. Nexavar®, jointly developed by Bayer HealthCare and Onyx Pharmaceuticals, Inc., is the first product demonstrated to significantly extend overall survival in patients suffering from liver cancer. The Dermatology (Intendis) business unit achieved sales of €244 million (2006: €118 million pro-rated). On a currency-adjusted basis, pro-forma sales of the two leading products
Skinoren® and Advantan® rose by 11.0 and 5.6 percent, respectively. EBITDA before special items for Pharmaceuticals in 2007 advanced by 66.5 percent to €2,807 million (2006: €1,686 million). EBIT before special items rose by €707 million, or 75.7 percent, to €1,641 million. The net special charges of €900 million largely comprise expenses associated with the integration of Schering. Also included in this figure are a €152 million write-down of intangible assets necessitated by the results of the BEYOND study on Betaferon®/Betaseron® and provisions recorded in connection with the suspension of marketing for Trasylol®. EBIT moved ahead by 31.6 percent to €741 million.
Consumer Health
In the Consumer Health segment, business expanded by 6.9 percent in 2007, to €4,540 million (2006: €4,246 million). Adjusted for currency and portfolio changes, sales were up by 10.3 percent. We registered above-market growth in all three divisions.
The Consumer Care Division grew sales by 4.1 percent to €2,634 million (2006: €2,531 million). This figure takes into account our first sales of the calcium dietary supplementCitracal®, acquired in the fourth quarter from Mission Pharmacal Company of the United States. Currency- and portfolio-adjusted sales improved by 7.8 percent. The highest growth rates were posted by Berocca® (currency-adjusted: +16.8 percent), Canesten® (currency-adjusted: +15.4 percent) and Aleve® (currency-adjusted: +13.9 percent).
Sales of the Diabetes Care Division came in at €950 million (2006: €810 million), with a currency- and portfolio-adjusted increase of 17.5 percent. This gratifying trend was chiefly attributable to the successful marketing, particularly in North America and Europe, of ourAscensia® Contour® and Ascensia® Breeze® blood glucose monitoring systems, which replace the Elite® systems of the Ascensia® product family.
Sales of the Animal Health Division increased by 5.6 percent to €956 million (2006: €905 million), or by 10.6 percent when adjusted for currency effects. The performance of ourAdvantage® product line was particularly gratifying, with currency-adjusted sales rising by 20.8 percent. In October 2007, the European Medicines Agency (EMEA) expanded the registration for the canine anti-parasitic Advocate®.
The Consumer Care Division grew sales by 4.1 percent to €2,634 million (2006: €2,531 million). This figure takes into account our first sales of the calcium dietary supplement
Citracal®, acquired in the fourth quarter from Mission Pharmacal Company of the United States. Currency- and portfolio-adjusted sales improved by 7.8 percent. The highest growth rates were posted by Berocca® (currency-adjusted: +16.8 percent), Canesten® (currency-adjusted: +15.4 percent) and Aleve® (currency-adjusted: +13.9 percent). Sales of the Diabetes Care Division came in at €950 million (2006: €810 million), with a currency- and portfolio-adjusted increase of 17.5 percent. This gratifying trend was chiefly attributable to the successful marketing, particularly in North America and Europe, of our
Ascensia® Contour® and Ascensia® Breeze® blood glucose monitoring systems, which replace the Elite® systems of the Ascensia® product family. Sales of the Animal Health Division increased by 5.6 percent to €956 million (2006: €905 million), or by 10.6 percent when adjusted for currency effects. The performance of our
Advantage® product line was particularly gratifying, with currency-adjusted sales rising by 20.8 percent. In October 2007, the European Medicines Agency (EMEA) expanded the registration for the canine anti-parasitic Advocate®.| Consumer Health | 2006 | 2007 | Change |
| € million | € million | % | |
| Sales | 4,246 | 4,540 | +6.9 |
| Consumer Care | 2,531 | 2,634 | +4.1 |
| Diabetes Care | 810 | 950 | +17.3 |
| Animal Health | 905 | 956 | +5.6 |
| Sales by Region | |||
| Europe | 1,691 | 1,817 | +7.5 |
| North America | 1,463 | 1,577 | +7.8 |
| Asia/Pacific | 336 | 364 | +8.3 |
| Latin America/Africa/Middle East | 756 | 782 | +3.4 |
| EBITDA1 | 896 | 957 | +6.8 |
| Special items | (31) | (28) | |
| EBITDA before special items2 | 927 | 985 | +6.3 |
| EBITDA margin before special items | 21.8% | 21.7% | |
| EBIT1 | 750 | 823 | +9.7 |
| Special items | (31) | (28) | |
| EBIT before special items2 | 781 | 851 | +9.0 |
| Gross cash flow1 | 634 | 704 | +11.0 |
| Net cash flow1 | 473 | 559 | +18.2 |
1 for definition see Bayer Group Key Data
2 for definition see also Calculation of EBIT(DA) Before Special Items
2 for definition see also Calculation of EBIT(DA) Before Special Items
| Best-Selling Consumer Health Products | 2006 | 2007 | Change | Currency- adjusted change |
| € million | € million | % | % | |
| Ascensia® product line (Diabetes Care) | 788 | 934 | +18.5 | +24.0 |
| Aspirin®* (Consumer Care) | 465 | 460 | -1.1 | +2.9 |
| Advantage® product line (Animal Health) | 275 | 314 | +14.2 | +20.8 |
| Aleve®/naproxen (Consumer Care) | 227 | 239 | +5.3 | +13.9 |
| Canesten® (Consumer Care) | 162 | 182 | +12.3 | +15.4 |
| Baytril® (Animal Health) | 162 | 156 | -3.7 | +1.2 |
| Bepanthen®/Bepanthol® (Consumer Care) | 131 | 145 | +10.7 | +11.2 |
| Supradyn® (Consumer Care) | 130 | 134 | +3.1 | +4.3 |
| One-A-Day® (Consumer Care) | 124 | 130 | +4.8 | +13.7 |
| Rennie® (Consumer Care) | 98 | 107 | +9.2 | +10.2 |
| Total | 2,562 | 2,801 | +9.3 | +14.2 |
| Proportion of Consumer Health sales | 60% | 62% |
* total Aspirin® sales = €689 million (2006: €674 million), including Aspirin Cardio®, which is reflected in sales
of the Pharmaceuticals segment
Aspirin® sales = €689 million (2006: €674 million), including Aspirin Cardio®, which is reflected in sales of the Pharmaceuticals segment
EBITDA before special items in the Consumer Health segment improved by 6.3 percent to €985 million (2006: €927 million), due especially to the gratifying expansion of business in all divisions. EBIT before special items moved ahead €70 million, or 9.0 percent, to €851 million. Earnings were diminished by special charges in connection with litigation-related accruals in the balance sheet. EBIT increased by €73 million, or 9.7 percent, to €823 million.
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