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    Home > Medical News > Latest Medical News > The US$6.9 billion divestment of its key business multinational pharmaceutical giants makes a big change!

    The US$6.9 billion divestment of its key business multinational pharmaceutical giants makes a big change!

    • Last Update: 2020-08-14
    • Source: Internet
    • Author: User
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    But the more these moments, the pharmaceutical business is showing its "chief" status.
    With the concentrated disclosure of the 2020 half-year results, it is not difficult to find that Johnson and Johnson, Pfizer, Roche and many other pharmaceutical business sectors covering the global "big man", in the previous has maintained positive performance growth, this year generally also underperformed, performance growth slowed sharply, or even reverse decline.
    in this case, their pharmaceutical business is generally turning around and becoming the only force driving the company's performance.
    perhaps that's why, in recent years, more and more drug companies have begun to call out the slogan "return to their core business".
    August 3, 2020, U.S. company Elanco announced the completion of its acquisition of Bayer MotorCo.
    deal, which was only officially announced last August, was completed a year later, only for the deal to go from a start of $7.6 billion to $6.89 billion.
    the completion of the transaction, Bayer Motor is expected to have five products in the research to join the research and development pipeline of Lilan Mobile Insurance, a new world's second largest mobile insurance company was born.
    For Bayer, the money is undoubtedly a very positive positive addition to the company's cash flow, almost "timely rain", after just spending $10.9 billion to dismiss the 100,000 lawsuits that cause herb cancer.
    is not really just Bayer.
    in recent years, whether it is the sale of assets or the spin-off of the company, the focus of multinational pharmaceutical companies in the pharmaceutical main business began to fully reflect.
    01 Double Crisis Has Forced MNC to face the challenge of patent expiration, and Bayer has not escaped.
    public data show that the world's top five sales of anti-thrombosis drug leveshsaban earlier in 2020 will be patent expires.
    the drug was among the world's top 10 best-selling drugs with sales of $6.147 billion in 2017, and while sales could reach $6.8 billion in 2019, there is no denying that the growth rate of Thesaban has slowed significantly since 2017.
    the crop science and pharmaceutical sectors are the top two performers for Bayer, which together account for more than 85 percent of its revenues.
    in 2019, Bayer's total revenue for the full year was EUR 43.545 billion, up 18.5% YoY, with the Crop Science segment accounting for EUR 19.832 billion, or 45.5%, and the Pharmaceutical Sector's revenue of EUR 17,962 million, or 41.2%.
    and for the past five years, the animal health sector has been one of Bayer's three business areas, accounting for no more than 20% of revenue.
    animal health accounts for a small share, and the case in crop science has added to Bayer's woes.
    two years, Bayer has been dogged by 100,000 marathon lawsuits over alleged cancer at its company, Monsanto, and in June, it reached a $10.9 billion settlement with the plaintiffs.
    , bayer's pharmaceutical business is growing steadily under multiple pressures.
    2019, Bayer's sales in China rose 5.6 percent, helped by a rise in sales of a major ophthalmology drug in the world, and Bayer expects its pharmaceutical business in China to grow by 25 percent in 2020.
    , Bayer is also expanding into a broader market for cancer, with Darolutamide, a small molecule-targeted drug for prostate cancer, being approved in the U.S. and Japan in 2019 and Anetumab Ravtansine, a DDC drug for mesothelioma, entering Clinical Phase 2.
    but it is clear that Bayer's pharmaceutical business does lack the heavyweights who can support performance.
    Bayer's recent semi-annual report also shows that its pharmaceutical business needs "more beat" products.
    Bayer's total revenue for the first half of 2020 was EUR 22,899 million, down 0.3% YoY, with all but the Crop Science segment showing a downward trend in all sectors, with pharmaceutical sales of EUR 8.538 billion, down 2.5% YoY.
    its semi-annual report shows that the main reason is the impact of the new crown outbreak and the decline of the Chinese market.
    the impact of the new crown outbreak is mainly during the period hospital visits and prescriptions reduced led to a significant decline in ophthalmology and radiation business sales, the decline in the Chinese market is due to the volume of procurement policy, due to the lowest price selected diabetes drug Bai sugar flat low-cost "anti-phage", the increase in sales of the drug did not make up for the sharp decline in prices, down 74.2% year-on-year.
    , Bayer's anti-cancer drug Bevango and the pulmonary arterial high-pressure drug Liositablet have not saved Bayer's declining pharmaceutical business.
    horizontallook of MCS, which has now reported first-half results, Johnson and Johnson, despite a 3.8% decline, but its pharmaceutical business, Janssen, grew 5.4 percent year-on-year, while Roche's pharmaceutical business grew 3 percent, as well as Anova, Sanofi, GSK and other MCCs, all made up for the loss caused by the steady growth of the pharmaceutical business.
    it is clear that Bayer is spouring its revenue-smaller business and focusing more on the growth of its pharmaceutical business or the growth opportunities it will offer itself.
    02 A batch of MNC spun off, big changecoming? In the past 2019 and the first half of 2020, the big moves of multinational pharmaceutical companies are not small, some people are busy integrating acquisitions, some people are busy corporate split.
    big mergers and acquisitions naturally need not say.
    BMS's $74 billion acquisition of New Age, AbbVie's $63 billion acquisition of ElKen and Takeda's $62 billion acquisition of Shire all directly led to a change in the global drug rankings.
    more and more Big Maccompanies were born, and more and more drug makers chose to slim down.
    the first announced split in the first half of 2020 was Mercado. In February
    , Mercado announced that it would start spun off its women's health products, mature products and biosimilar products in 2020 to create a new independent public company.
    Mercadon will retain products with key growth points, such as cancer, vaccines, in-hospital products and animal health.
    , "These moves today will ensure the long-term growth and viability of The Sandon" and that "traditional products are draining the money needed to support the growing tumor business, but the huge success of this business is largely due to the heavy-handed K-drug", "and we will be able to allocate funds to businesses that have never been done before, and to allow the entire organization to focus on the opportunities that the rest of the sectorbehind keytruda and Keytruda have."
    this is clear from What Mershadon has done in recent years.
    K drug was approved for sale five years ago, in addition to the gradual growth of the $10 billion mark of the heavy bomb K drug, Mercado has been two years in a row on the new drug particles.
    and Brittin is facing patent expiration, Olapani and Levatini are working together externally, and under the backdrop of K-drugs, Mercadon's existing research and development pipeline doesn't seem to be bright.
    and Mercadon announced the split almost simultaneously with GSK. On February 5,
    , GSK announced a two-year split that would split into two separate companies, a biopharmaceutical company focused on genes and new technologies developed in immune system-related science, and a leading company in consumer health.
    , GSK expects the one-off cost of the spin-off to be about 6-700 million pounds, which will cost 2.4 billion pounds over two years, including 1.6 billion pounds in cash.
    in fact, the GSK split preforths, in December 2018, Pfizer and GSK announced that they would merge the two consumer health businesses, and GSK CEO Emma Walmsley announced that after the health care business is completed, GSK will be divided into two parts, one for prescription drugs and vaccines and the other for OTC products.
    the announced split is actually a continuation of 2018 and is clearer.
    clearly shows that GSK will never let go of the market's broad field of cancer, immunization.
    has shown ambitions in both areas since Walmsley took over GSK in 2017.
    2019, GSK acquired Tesaro for $5.1 billion, which owns anti-tumor or immuno-immune drugs in the field of PARP inhibitor Zejula, inhibitory PD-1, TIM-3 and LAG-3 checkpoints.
    at the JP Morgan conference, Walmsley announced that GSK will introduce five new products in 2020 covering cancer, HIV and kidney disease, while existing drugs will expand indications, including Zejula and Trelegy.
    original title: $6.9 billion divestment of its key business, multinational pharmaceutical giant big change! What are the new points behind layoffs, splits, and restructurings?
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