Enter medical insurance, China market volume: Bayer 2019q1 old brand drugs perform well

On April 25, Bayer released its financial report for the first quarter of 2019, with the group's sales increasing by 4.1% to 13.015 billion euros (about 14.49 billion US dollars); net income is expected to decline by 36.5% to 1.241 billion euros (about 1.382 billion US dollars), hindered by special projects related to acquisition and restructuring The pharmaceutical business has shown encouraging sales and profit growth Despite fierce competition, the growth of Bayer's pharmaceutical industry was again boosted this quarter by the unexpectedly strong growth of Nexavar and stivarga, the old cancer drugs, and jivi, the hemophilia drug Bayer said the growth of Nexavar and stivarga was due to the growth of sales in the mainland market, which ultimately led to "significant overall growth" Bayer's sales in China reached 776 million euros (about $864 million) in the quarter, up 24% year-on-year, Bayer executives said on Thursday's earnings conference call Analysts at Jefferies said that although sales of Nexavar, the "old drug" multi kinase inhibitor, were expected to decline in the first quarter, they actually increased 13.6% year-on-year to 184 million euros (US $205 million) Stivarga is a dual vegfr2-tie2 inhibitor As a component of its five growth prospects, stivarga does not meet Bayer's sales expectations In the first quarter, sales of 97 million euros were 26.0% higher than previously expected In recent years, Nexavar and stivarga have been included in the list of Medicare reimbursement drugs in China In addition, although Bayer and its U.S partner Johnson & Johnson continue to face a fierce confrontation between xarlto and Pfizer / Bristol Myers Squibb eliquis, Bayer's xarlto sales outside the U.S increased by 15% to 937 million euros "While China's franchise rights account for a relatively small part of the group's overall revenue, the sales of xarlto in China doubled to 75 million euros, thanks to the inclusion of the drug in China's national health care drug list," Stefan oerlich, head of Bayer pharmaceuticals, said in a conference call on Thursday "We are trying to achieve a breakthrough of 3 billion euros in drug sales in China by 2022, and we realize that this is not an easy task," Oelrich said He proposed a two pronged strategy to continue to promote innovation and rapid inclusion in the Medicare reimbursement list, thereby significantly increasing production This strategy has been proved to be feasible and effective by the above three drugs, and Bayer is also studying how to better handle the established business in the long run It should be noted that many Bayer products are facing generic competition, including the oral contraceptive Yaz series Prescription drugs for Bayer's revenue decline in the first quarter include the kogenate hemophilia drug family, the multiple sclerosis drug Betaseron or hypertension treatment Adalat The sales volume of Bayer hemophilia franchise drugs (kogenate and jivi) is 241 million euros, which is basically the same as that in the same period of 2018, actually exceeding the market expectation by 19% However, such drugs are facing the direct competition of rapid growth in sales of Roche hemlibra While Bayer's best-selling heart drug, xarlto, roughly doubled its sales in China in the first quarter of 2019, the rest of its older products were struggling, oerlich said Bayer's drug sales will face further resistance as the Chinese government introduces a pricing model based on the value of drug treatment Bayer is developing darotamine in the treatment of non metastatic castrated prostate cancer (nmcrpc) In February 2019, the company completed the new drug application (NDA) of darotamide in the United States Analysts also said the old drugs were unsustainable for growth and Bayer needed to strengthen its channels for developing innovative drugs In order to provide more resources for the life science business, Bayer is carrying out large-scale reform, such as adjusting foot and sunscreen consumer products, animal health business After evaluating all the possibilities, the company said it might sell the animal franchise rather than spin it off, but Bayer will also continue to consider all options for maximizing value Although the animal health business underperformed in the first quarter, with sales of 421 million euros lower than the market expectation by 2%, Werner Baumann, Bayer's chief executive, said in a conference call that "the profits in this area are rich and huge, and will experience a highly competitive process." In addition, analysts are still focusing on Bayer's crop business Bayer acquired Monsanto, an agricultural giant, for $63 billion The deal made the German company the world's largest supplier of crop seeds and pesticides, but it also brought thousands of lawsuits against Monsanto roundup for carcinogenesis, hitting Bayer Group hard As of April 11, the number of lawsuits against Roundup has risen from 11200 in February 2019 to 13400 Baumann again stressed that "the number of plaintiffs is not reflected in the outcome of the case." But it's undeniable that Bayer has suffered a series of failures in court recently In the first round of comprehensive rulings, the California jury awarded $289 million in damages, which was later reduced to $78 million by judges, and Bayer has appealed "Bayer still believes in the initiative and intends to vigorously protect itself in all related lawsuits," the company said in a statement Nevertheless, Baumann may have to face the anger of investors and shareholders at Bayer's annual meeting Since California's first ruling, Bayer's shares have fallen about 30% At the meeting, BlackRock, Bayer's largest shareholder with 7.2% voting rights, plans to vote against management's performance in 2018 Top acting consultants glass Lewis and institutional shareholder services also recommend a vote of no confidence in Baumann's management team Bayer's management has to go through a "bitter battle" (Sina medical compiler / fan Dongdong, editor / Kerr) article reference source: 1 Bayer: strong operational start to the year 2 A s Roundup suits pile on, Bayer's drugs deliver a surprisingly good show 3 Bayer says it is looking into established drugs strategy