New director, new strategy? In June, Bayer will undergo a transfer of power longed by its investors and recommended by analysts: Werner Baumann, who has 35 years of experience at the German company, will hand over the baton. For former Roche Pharmaceutical Director Bill Anderson. Foreign consolidation with a pharmaceutical profile was well received, even if the new CEO chose to give wings to the company with a sustainable profile, or to flirt with the pharmaceutical and agricultural business as they say.
Currently, the signature looks good among investors. The company Andersen has reached the top of the company and recorded a 7% increase in the stock market on the day of the financial institution’s announcement. Credit Suisse looked at the experience in its latest report Pharmacy It makes it a “valuable” signature. However, the company issued a petition to the manufacturer saying, “We look forward to hearing your views on the synergy that the company’s crop and pharmaceutical divisions should maintain.”
The German company has been overwhelmed by the purchase of the American company Monsanto in recent years. The decision, announced by Baumann himself in 2018, brought Bayer two years after taking over the management of the company. The wave of litigation that resulted in billions of dollars in the United States and the decrease in the value of the company. Monsanto, bought by Bayer for $63 million, has been accused of making herbicides that cause cancer. Baumann’s strategy has been criticized by investors, who have accused the company’s CEO of underestimating the legal risk the group assumes.
Bayer has several motivations for this exercise: new leadership, a possible restructuring plan and the beginning of the end of the Monsanto affair.
In the year By mid-2022, Bayer has already informed shareholders that it will seek talent from outside the company to lead the team. “We welcome the current leadership change at Bayer. And we hope that the new perspective of an outsider will give new impetus to the strategy, congratulations to the investment fund Deca in the group, Union Investment, one of Bayer’s ten largest shareholders, has joined. .
Among the pharmaceutical company’s shareholders, the possibility of divesting the business from Bayer has also been considered. Pharmacy Cereal crops. From Credit Suisse, they confirm that Investors want to see a “wrench”., but, for the time being, the company has not given signs that it is going to jump. The signing of the pharmaceutical expert was seen as a strengthening of the unit, Andersen himself said in an interview with German media. Manager magazine His spirit is “preventing the accumulation situation in the long run.”
Currently, the company is in the middle of a “reorganization” to save costs. The company announced that it will cut 55 jobs at its Berkeley (California) plant. Biotech. The German company is not the only one to cut its workforce. BiotechSo is Johnson & Johnson, which is conducting a “global review” of its business, although it has not disclosed how the move will be made.
Credit Suisse expects a rebound in sales. Pharmacy 1% by 2023
For this exercise, Credit Suisse expects a rebound in sales. Pharmacy 1% is driven by new drugs.This will barely compensate for the erosion in the narrow margin of old products, international sales will increase by 3%, according to the forecast provided by the German joint venture.
Credit Suisse estimates revenues of 25,219 million euros in the agriculture segment, while the pharmaceuticals segment will register revenues of 19,948 million euros and 6,099 million euros. Consumer healthThey close the year with 50,011 million euros in international sales. One of the risks the company faces is falling prices for gilfostat, an herbicide the company sells in growing areas. however, It seems that he is entering the final trial And he pleaded guilty to three of the four charges against him.
Last year, Teutonic International’s revenue was 50,739 million euros, representing an increase of 15.1% compared to the turnover of 44,081 million euros a year ago. Profits, on the other hand, soared, quadrupling to 4,150 million euros.