Bayer AG suffered setback during the first quarter ended March 2006 and its net profit after non-operating items declined by 8.1 per cent to Euro 600 million from Euro 652 million in the corresponding period of last year. Its net sales, however, improved by 11.8 per cent to Euro 7,494 million from Euro 6,704 million. The earning per share worked out to Euro 0.82 from Euro 0.89.

The pharmaceutical segment achieved strong growth of 20.6 per cent to Euro 1,148 million as against Euro 952 million in the similar period of last year. Its diabetes care & diagnostics sales increased by 23.9 per cent to Euro 571 million from Euro 461 million. Business in North America showed particularly strong growth. From January 1, 2006, the company has sub divided into three business viz. Primary Care, Hematology/Cardiology and Oncology.

EBDIT for the pharmaceuticals segment improved by 89.8 per cent to Euro 241 million in the first quarter of 2006 from Euro 127 million in the similar period of last year. The sales of Kogenate product moved up by 63.2 per cent to Euro204 million from Euro125 million.

Bayer is acquiring Schering AG for a total transaction volume of Euro 16.5 billion which will strengthen its pharmaceutical business. The acquisition would raise the specialty products' share of Pharmaceuticals division sales from the current level of 25 per cent to around 70 per cent. The merger will also give a balanced portfolio of established businesses and disproportionately fast-growing franchises such as oncology, cardiology/hematology and gynecology. The acquisition would give the Bayer Group total sales of more than Euro 31 billion based on 2005.figures, with 70 per cent of this in the life sciences.