Bayer raises sales targets for top-selling drugs after Monsanto deal
German drugmaker Bayer
Bayer now expects annual peak sales of more than 5 billion euros ($5.6 billion) for stroke prevention pill Xarelto, jointly sold with Johnson & Johnson
For the eye medicine Eylea, jointly developed with Regeneron
Also underpinned by cancer drug Xofigo and pulmonary hypertension treatment Adempas, the group’s prescription drugs unit aims to increase earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for special items, to 32-34 percent of sales in 2018, up from 30.1 percent last year.
The smaller animal health unit could also slightly increase margins, Bayer said.
In consumer health, previously boosted by the acquisition of brands from Merck & Co
Bayer has “underestimated the country risk from Emerging Markets volatility”, the company said in presentation slides.
It also cited “stronger business disruption than anticipated during the integration of Merck Consumer Care and Dihon in China”, referring to a Chinese non-prescription drugs unit it acquired in 2014.
“2018 EBITDA guidance for Pharma and Animal Health may … offer some upside against consensus, though the consumer margin guidance may disappoint slightly,” Jefferies analysts said in a note to investors.
Bayer shares were seen 1.5 percent higher in premarket trading at brokerage Lang & Schwarz, where the overall German market was seen little changed ahead of the official market open at 0700 GMT.
(Reporting by Ludwig Burger; editing by Tina Bellon and Jason Neely)