Bayer revenues in Q2 rise as net earnings dip
Generic competition in US affects YAZ sales
Germany’s Bayer saw its second quarter net earnings dip by 1.3% owing to lawsuits and writing down a cancer drug.
Revenues climbed 14.6% to €9.18bn as net income fell to €525m, down from €532m a year earlier.
Bayer said it took special charges of €255m in the quarter, of which €123m related to litigation and €132m from a partial write-down on cancer drug Zevalin.
Sales in the pharmaceuticals segment of the Healthcare division increased by 4.3% to €2.7bn. Business expanded in the Asia/Pacific and Latin America/Africa/Middle East regions, more than offsetting a decline in North America.
Generic competition and lower demand in the US led to a sales decline of 14.9% for the YAZ family of oral contraceptives.
Multiple sclerosis drug Betaferon/Betaseron declined by 10.7%, mainly owing to competition in Germany and the US.
By contrast, the haemophilia drug Kogenate saw sales growth of 25.2%. The antibiotic drug Avalox/Avelox was also successful, growing by 20.8%. Sales of cancer drug Nexavar increased by 19.6%. Also achieving substantial gains were Aspirin Cardio and Kinzal/Pritor.
Bayer said it was adjusting its pharmaceuticals sales forecast for 2010 following ‘unexpected’ generic competition to YAZ in the US. Sales in the segment are expected to remain flat year-on-year.
The Leverkusen firm said r&d expenses would reach a new high of approximately €3.1bn for the year.
‘We are supporting our successful pharmaceutical research and development pipeline – and underscoring our position as the leading research-based pharmaceutical and chemical company in Germany,’ said chairman Werner Wenning.
Bayer anticipates a further recovery in the global economy during 2010, although the pace of growth is expected to slow as the year progresses.
‘We remain optimistic for 2010,’ Wenning added.