The Bayer Group achieved strong increases in sales and earnings in the first quarter of 2005. Its sales from continuing operations grew by 15.7 per cent to EUR 6,704 million from EUR 5,792 million in the corresponding period of last year. The earnings before interest and tax went up sharply by 50.1 per cent to EUR 1142 million from EUR 761 million in the last period. Similarly, its net earnings increased by 55.6 per cent to EUR 652 million from EUR 419 million. The earnings per share worked out EUR 0.89 for the first quarter of 2005.
EBIT of Bayer HealthCare also edged forward, as the subgroup more than offset the effects of the decline in sales of the antibiotic Cipro due to its patent expiration in the United States and the special charges in connection with the Roche OTC acquisition.
Werner Wenning, chairman said at annual stockholders meeting that the results for the first three months of this year were very pleasing. The economy remained robust, driven primarily by the United States and Asia, he added.
For 2005 Bayer is targeting an increase of more than 5 per cent in currency-and portfolio-adjusted sales from continuing operations, to over EUR 25 billion. The company also reaffirms its target of improving EBIT from continuing operations before special items by around 20 per cent despite the renewed rise in raw material costs. "This would be another step toward achieving our medium-term profitability targets," Wenning said.
"Our pharmaceutical research activities will focus in the future on cardiovascular risk management - including diabetes - and cancer," Wenning said.
Wenning explained that Bayer would drive forward its New Drug Application for approval in the United States and is also in close contact with the regulatory authorities in other countries regarding this product. The company plans to launch sorafenib in the US in 2006 for the treatment of kidney cancer. According to Wenning, Bayer has also just begun phase III studies in patients with advanced liver cancer.
For the long term Bayer is relying on its extraordinary innovation and growth platform, for example in the area of nanotechnology. Here the company has numerous products in development, such as nanoscale raw materials for automotive coatings with enhanced scratch resistance.
Wenning emphasized that Bayer regards biotechnology above all to be of special importance for shaping the future, with interesting prospects opening up for all three subgroups. For example, biotechnology offers fascinating long-term opportunities for the production of renewable raw materials, which are gaining in importance because of limited resources. Proteins manufactured from plants could be used as active ingredients in medicines, and plastics could be produced using raw materials from genetically modified plants.