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    Home > Medical News > Medical World News > Bayer's growth highlights the dangers of neglecting to buy Monsanto's research and development

    Bayer's growth highlights the dangers of neglecting to buy Monsanto's research and development

    • Last Update: 2021-02-21
    • Source: Internet
    • Author: User
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    's pharmaceutical products have been growing, and its 2016 figures show how and how much. Prescription drug sales rose 8.7 percent last year to 16.4 billion euros, the company said in its annual earnings announcement, while its competitors usually followed suit.
    sales increased from Bayer's best-performing pharmaceuticals, plus consumer health drugs (3.5%) and animal health drugs (4.8%), driving the German company's healthcare-related product revenues to more than 22 billion euros.
    is a problem for the emerging healthcare business. While Bayer expects solid growth, sales and commitments in 2017 to improve margins in these three areas, analysts are concerned that the company's focus will be on resources consumed by Monsanto's acquisition. They also worry that the company may not have the capital to invest in research and development projects such as Xarelto, which produces blockbuster anticoagulants, and Eyelea, a vision therapy drug.
    last year, Bernstein analyst Ronny Gal said the Monsanto deal marked a "lost opportunity to develop pharmaceutical channels," noting that "Bayer does not have the money to invest in both agriculture and pharmaceuticals." "it
    ironic, considering that the company has spent billions of dollars on these drugs over the past few years. Take Xarelto, for example, where Bayer sells outside the United States. Last year, currency-adjusted sales rose 30 per cent as demand increased in Europe and Japan. The German company also received larger drug licensing revenues from its U.S. partner, Johnson and Johnson. What about total sales? Almost 3 billion euros. Eylea delivered 1.62 billion euros, with sales up 32%.
    two drugs and three other new Bayer drugs - the colon cancer drug Stivarga, the prostate cancer radiation drug Xofigo and the pulmonary hypertension drug Ademas - are expected to total 6 billion euros this year.
    , but beyond that, Bayer is under pressure from haemophilia franchises because other drug makers have launched competing products, a reliable revenue-generating mechanism. For example, Kogenate/Kovaltry's sales increased year-on-year in 2016. Its older multiple sclerosis drug is also on the decline as it loses its extensivity in various markets and faces new competition, with sales falling by more than 10 per cent to 734 million euros. Nexavar still has huge sales - annual sales of 830 million euros - and faces patent losses in 2020 and may have to deal with generics as soon as possible if challenger Mylan has the means.
    Stivarga drug itself is on the decline. Lonsurf, a new competitor from Japanese pharmaceutical company Otsuka, was approved in October 2015 and has since played a role in eroding Stivarga sales. Last year, Bayer Pharma's share price fell 12 percent to 275 million euros.
    now, when the drug was de-patented in 2024, Bayer didn't develop many new drug candidates to replace Xarelto, let alone Nexavar.
    , Bayer will need to invest in pharmaceutical research and development to strengthen the long-term sales of healthcare drugs. Bayer hopes to boost consumer health and animal health drugs when it buys Merck in 2014, but at a much slower pace than pharmaceuticals.
    , another analyst at Bayer Pharmaceuticals, worries that the company will not be able to offer enough new drugs in the next few years. "The company spends less on research and development than its peers, big pharmaceutical companies, " he says. With that in in account, Monsanto's deal could significantly weaken Bayer's ability to grow in the pharmaceutical sector. Bayer
    s best-selling drug has kept the company on a positive track in recent years. Because the money and time it spends on the c-crop science merger will be a long-term mistake, which will make its channel fail. (China Pharmaceutical 123 Network)
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