13.1 HealthCare

Key Data – HealthCare

 

 

4th Quarter 2014

4th Quarter 2015

Change

 

Full Year 2014

Full Year 2015

Change

 

 

€ million

€ million

%

Fx & p adj. %

 

€ million

€ million

%

Fx & p adj. %

2014 figures restated

Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted

1

For definition see Chapter 14.2 “Calculation of EBIT(DA) Before Special Items.”

2

For definition see Chapter 14.5 “Liquidity and Capital Expenditures of the Bayer Group.”

Sales

 

5,351

5,811

+8.6

+8.5

 

19,075

22,874

+19.9

+8.1

Change in sales

 

 

 

 

 

 

 

 

 

 

Volume

 

+5.8%

+8.1%

 

 

 

+6.4%

+7.4%

 

 

Price

 

+2.0%

+0.4%

 

 

 

+1.1%

+0.7%

 

 

Currency

 

0.0%

0.0%

 

 

 

−3.7%

+4.5%

 

 

Portfolio

 

+5.5%

+0.1%

 

 

 

+1.8%

+7.3%

 

 

Sales

 

 

 

 

 

 

 

 

 

 

Pharmaceuticals

 

3,271

3,571

+9.2

+9.6

 

12,052

13,745

+14.0

+9.9

Consumer Health

 

2,080

2,240

+7.7

+6.9

 

7,023

9,129

+30.0

+5.1

Sales by region

 

 

 

 

 

 

 

 

 

 

Europe

 

1,832

1,923

+5.0

+5.9

 

6,870

7,404

+7.8

+8.8

North America

 

1,514

1,724

+13.9

+2.5

 

5,017

7,159

+42.7

+25.7

Asia / Pacific

 

1,215

1,376

+13.3

+6.3

 

4,427

5,342

+20.7

+10.3

Latin America / Africa / Middle East

 

790

788

−0.3

+29.9

 

2,761

2,969

+7.5

+21.5

 

 

 

 

 

 

 

 

 

 

 

EBIT

 

550

777

+41.3

 

 

3,470

4,050

+16.7

 

Special items

 

(376)

(264)

 

 

 

(331)

(600)

 

 

EBIT before special items1

 

926

1,041

+12.4

 

 

3,801

4,650

+22.3

 

EBITDA1

 

1,062

1,315

+23.8

 

 

5,059

5,914

+16.9

 

Special items

 

(347)

(196)

 

 

 

(298)

(505)

 

 

EBITDA before special items1

 

1,409

1,511

+7.2

 

 

5,357

6,419

+19.8

 

EBITDA margin before special items1

 

26.3%

26.0%

 

 

 

28.1%

28.1%

 

 

Gross cash flow2

 

1,217

820

−32.6

 

 

3,898

4,121

+5.7

 

Net cash flow2

 

2,158

1,094

−49.3

 

 

4,331

4,321

−0.2

 

Sales of the HealthCare subgroup rose by 8.1% (Fx & portfolio adj.) in 2015, to €22,874 million (reported: +19.9%). This encouraging growth was driven by our recently launched pharmaceutical products. Business expanded in all divisions of the Consumer Health segment. The considerable reported sales increase was chiefly attributable to business with products acquired from Merck & Co., Inc., United States, and to currency effects.

HealthCare Quarterly Sales

HealthCare Quarterly Sales (bar chart)HealthCare Quarterly Sales (bar chart)

EBIT Income after income taxes, plus income taxes, plus financial result; EBIT is not defined in the International Financial Reporting Standards. of HealthCare advanced by 16.7% in 2015 to €4,050 million. This figure reflected special charges of €600 million (2014: €331 million). EBIT before special items improved by a clear 22.3% to €4,650 million. We raised EBITDA before special items EBITDA plus special charges, minus special gains; this indicator is not defined in the International Financial Reporting Standards. by a substantial 19.8% to €6,419 million. This earnings growth resulted mainly from the very favorable development of business at Pharmaceuticals and Consumer Health – at Consumer Health especially due to the contributions from the acquired businesses – and from positive currency effects of about €250 million. Earnings were diminished by increased investment in research and development at Pharmaceuticals and higher selling expenses at Consumer Health.

HealthCare
Quarterly EBIT

HealthCare – Quarterly EBIT (bar chart)HealthCare – Quarterly EBIT (bar chart)

HealthCare
Quarterly EBITDA Before Special Items

HealthCare – Quarterly EBITDA Before Special Items (bar chart)HealthCare – Quarterly EBITDA Before Special Items (bar chart)

Pharmaceuticals

Key Data – Pharmaceuticals

 

 

4th Quarter 2014

4th Quarter 2015

Change

 

Full Year 2014

Full Year 2015

Change

 

 

€ million

€ million

%

Fx & p adj. %

 

€ million

€ million

%

Fx & p adj. %

Fx & p adj. = currency- and portfolio-adjusted; Fx. adj. = currency-adjusted

1

For definition see Chapter 14.2 “Calculation of EBIT(DA) Before Special Items.”

2

For definition see Chapter 14.5 “Liquidity and Capital Expenditures of the Bayer Group.”

Sales

 

3,271

3,571

+9.2

+9.6

 

12,052

13,745

+14.0

+9.9

Sales by region

 

 

 

 

 

 

 

 

 

 

Europe

 

1,176

1,294

+10.0

+10.0

 

4,396

4,869

+10.8

+11.0

North America

 

735

823

+12.0

+2.7

 

2,728

3,363

+23.3

+7.6

Asia / Pacific

 

884

1,002

+13.3

+6.0

 

3,278

3,868

+18.0

+7.2

Latin America / Africa / Middle East

 

476

452

−5.0

+25.6

 

1,650

1,645

−0.3

+15.9

 

 

 

 

 

 

 

 

 

 

 

EBIT

 

375

551

+46.9

 

 

2,371

2,807

+18.4

 

Special items

 

(290)

(149)

 

 

 

(286)

(254)

 

 

EBIT before special items1

 

665

700

+5.3

 

 

2,657

3,061

+15.2

 

EBITDA1

 

678

884

+30.4

 

 

3,446

3,987

+15.7

 

Special items

 

(261)

(107)

 

 

 

(253)

(208)

 

 

EBITDA before special items1

 

939

991

+5.5

 

 

3,699

4,195

+13.4

 

EBITDA margin before special items1

 

28.7%

27.8%

 

 

 

30.7%

30.5%

 

 

Gross cash flow2

 

843

546

−35.2

 

 

2,745

2,737

−0.3

 

Net cash flow2

 

1,719

784

−54.4

 

 

3,266

2,863

−12.3

 

Sales of the Pharmaceuticals segment climbed by a substantial 9.9% (Fx & portfolio adj.) to €13,745 million. This very good performance was driven by our recently launched products Xarelto™, Eylea™, Stivarga™, Xofigo™ and Adempas™, which posted combined sales of €4,231 million (2014: €2,908 million). Our Pharmaceuticals business registered encouraging growth in all regions on a currency-adjusted basis. Business developed especially well in Germany, Japan and the United States.

Best-Selling Pharmaceuticals Products

 

 

4th Quarter 2014

4th Quarter 2015

Change

 

Full Year 2014

Full Year 2015

Change

 

 

€ million

€ million

%

Fx adj. %

 

€ million

€ million

%

Fx adj. %

2014 figures restated

Fx adj. = currency-adjusted

Xarelto™

 

516

650

+26.0

+27.6

 

1,679

2,252

+34.1

+34.2

Eylea™

 

219

354

+61.6

+58.0

 

759

1,228

+61.8

+57.4

Kogenate™

 

301

286

−5.0

−6.0

 

1,109

1,155

+4.1

−1.1

Mirena™ product family

 

225

226

+0.4

−5.2

 

819

968

+18.2

+5.7

Nexavar™

 

202

231

+14.4

+10.9

 

773

892

+15.4

+7.4

Betaferon™ / Betaseron™

 

191

190

−0.5

−4.6

 

823

824

+0.1

−8.1

YAZ™ / Yasmin™ / Yasminelle™

 

198

168

−15.2

−3.8

 

768

706

−8.1

−4.7

Adalat™

 

153

152

−0.7

+2.2

 

588

633

+7.7

+1.2

Aspirin™ Cardio

 

130

131

+0.8

+2.3

 

486

524

+7.8

+2.3

Glucobay™

 

133

142

+6.8

−1.6

 

443

523

+18.1

+2.4

Avalox™ / Avelox™

 

96

85

−11.5

+1.3

 

381

379

−0.5

−2.3

Stivarga™

 

63

77

+22.2

+12.4

 

224

313

+39.7

+24.5

Xofigo™

 

29

69

+137.9

+110.5

 

157

257

+63.7

+43.2

Levitra™

 

56

61

+8.9

+11.1

 

245

226

−7.8

−8.0

Cipro™ / Ciprobay™

 

52

52

0.0

+6.8

 

191

182

−4.7

−3.2

Total

 

2,564

2,874

+12.1

+11.8

 

9,445

11,062

+17.1

+11.8

Proportion of Pharmaceuticals sales

 

78%

80%

 

 

 

78%

80%

 

 

Sales of our oral anticoagulant Xarelto™ were up substantially in 2015, mainly as a result of expanded volumes in Germany and Japan. We registered a strong sales gain in the United States, where Xarelto™ is marketed by a subsidiary of Johnson & Johnson. Following its approval in additional indications, sales of our eye medicine Eylea™ posted substantial gains, particularly in Europe and Japan. Our cancer drug Stivarga™ benefited from positive development in the United States and from the reversal of a rebate provision in France. An encouraging contribution to sales growth was made by our cancer drug Xofigo™, thanks primarily to the expansion of volumes in the United States. Sales of Adempas™ (2015: €181 million; 2014: €89 million) to treat various forms of pulmonary hypertension rose substantially, especially in the United States. This figure reflects the proportionate recognition of the one-time payment resulting from the sGC collaboration with Merck & Co., Inc., United States.

Growth in sales of the hormone-releasing intrauterine devices of the Mirena™ product family – Mirena™ and Jaydess™ / Skyla™ – resulted especially from higher demand in the United States. The cancer drug Nexavar™ posted sales gains, particularly in the United States and Germany. Adalat™ for the treatment of hypertension and coronary heart disease, Aspirin™ Cardio for secondary prevention of heart attacks and our oral diabetes treatment Glucobay™ continued to benefit from strong demand in China.

Sales of our blood-clotting medicine Kogenate™ were down slightly year on year, receding by 1.1% (Fx adj.), due mainly to the temporary use of production capacities to develop our next-generation hemophilia medicines. Increased competition caused sales of our multiple sclerosis drug Betaferon™ / Betaseron™ to decline in all regions, mainly Europe and the United States. Business with our YAZ™ / Yasmin™ / Yasminelle™ oral contraceptives was held back especially by generic competition in Europe and the United States. Sales of the antibiotic Avalox™ / Avelox™ fell, particularly in Europe and the United States, following the expiration of patent protection during 2014. Sales of the erectile dysfunction treatment Levitra™ also receded.

EBIT of the Pharmaceuticals segment rose by a substantial 18.4% in 2015 to €2,807 million. Special charges of €254 million (2014: €286 million) mostly comprised €126 million for efficiency improvement measures, €67 million for the revaluation of other receivables and €43 million for the impairment loss on a research project. EBIT before special items EBIT plus special charges, minus special gains; this indicator is not defined in the International Financial Reporting Standards. increased by 15.2% to €3,061 million. EBITDA before special items improved by 13.4% to €4,195 million. This earnings increase was primarily attributable to the very good development of business, particularly for our recently launched products, and to positive currency effects of about €140 million. As expected, earnings were diminished by higher research and development expenses.

Consumer Health

Key Data – Consumer Health

 

 

4th Quarter 2014

4th Quarter 2015

Change

 

Full Year 2014

Full Year 2015

Change

 

 

€ million

€ million

%

Fx & p adj. %

 

€ million

€ million

%

Fx & p adj. %

2014 figures restated

Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted

1

Includes the business with contrast agents and medical devices

2

For definition see Chapter 14.2 “Calculation of EBIT(DA) Before Special Items.”

3

For definition see Chapter 14.5 “Liquidity and Capital Expenditures of the Bayer Group.”

Sales

 

2,080

2,240

+7.7

+6.9

 

7,023

9,129

+30.0

+5.1

Consumer Care

 

1,384

1,506

+8.8

+9.8

 

4,245

6,076

+43.1

+6.1

Animal Health

 

300

319

+6.3

+3.0

 

1,318

1,490

+13.1

+4.5

Medical Care1

 

396

415

+4.8

0.0

 

1,460

1,563

+7.1

+2.9

Sales by region

 

 

 

 

 

 

 

 

 

 

Europe

 

656

629

−4.1

−1.4

 

2,474

2,535

+2.5

+4.9

North America

 

779

901

+15.7

+2.3

 

2,289

3,796

+65.8

+47.3

Asia / Pacific

 

331

374

+13.0

+7.3

 

1,149

1,474

+28.3

+19.3

Latin America / Africa / Middle East

 

314

336

+7.0

+36.3

 

1,111

1,324

+19.2

+29.8

 

 

 

 

 

 

 

 

 

 

 

EBIT

 

175

226

+29.1

 

 

1,099

1,243

+13.1

 

Special items

 

(86)

(115)

 

 

 

(45)

(346)

 

 

EBIT before special items2

 

261

341

+30.7

 

 

1,144

1,589

+38.9

 

EBITDA

 

384

431

+12.2

 

 

1,613

1,927

+19.5

 

Special items

 

(86)

(89)

 

 

 

(45)

(297)

 

 

EBITDA before special items2

 

470

520

+10.6

 

 

1,658

2,224

+34.1

 

EBITDA margin before special items 2

 

22.6%

23.2%

 

 

 

23.6%

24.4%

 

 

Gross cash flow3

 

374

274

−26.7

 

 

1,153

1,384

+20.0

 

Net cash flow3

 

439

310

−29.4

 

 

1,065

1,458

+36.9

 

Sales of the Consumer Health segment advanced by 5.1% (Fx & portfolio adj.) in 2015 to €9,129 million. All divisions contributed to this growth. The significant reported increase in sales in the Consumer Care Division resulted from the products added through the recent acquisitions.

Best-Selling Consumer Health Products

 

 

4th Quarter 2014

4th Quarter 2015

Change

 

Full Year 2014

Full Year 2015

Change

 

 

€ million

€ million

%

Fx adj. %

 

€ million

€ million

%

Fx adj. %

Fx adj. = currency-adjusted

2014 figures restated

1

Product acquired from Merck & Co., Inc.

2

Total sales of Aspirin™, also including Aspirin™ Cardio, which is reflected in sales of the Pharmaceuticals segment, increased by 7.6% (Fx adj. 1.8%) in 2015 to €997 million (2014: €927 million). Total sales of this product in the fourth quarter of 2015 climbed by 2.0% (Fx adj. 1.3%) to €260 million (Q4 2014: €255 million).

3

Product acquired from Merck & Co., Inc.; trademark rights and distribution only in certain countries outside the European Union

Claritin™ (Consumer Care)1

 

83

134

+61.4

+55.5

 

627

.

.

Advantage™ product family (Animal Health)

 

105

104

−1.0

−8.0

 

495

547

+10.5

−1.3

Aspirin™ (Consumer Care)2

 

125

128

+2.4

+0.3

 

441

473

+7.3

+1.3

Aleve™ (Consumer Care)

 

105

105

0.0

+5.8

 

357

413

+15.7

+4.8

Bepanthen™ / Bepanthol™ (Consumer Care)

 

85

85

0.0

+10.1

 

346

355

+2.6

+11.5

Ultravist™ (Medical Care)

 

84

83

−1.2

+0.5

 

302

318

+5.3

+2.1

Gadovist™ / Gadavist™ (Medical Care)

 

65

79

+21.5

+18.2

 

233

290

+24.5

+17.6

Canesten™ (Consumer Care)

 

60

66

+10.0

+44.1

 

253

267

+5.5

+17.3

Dr Scholl’s™ (Consumer Care)3

 

47

62

+31.9

+19.0

 

253

.

.

Alka-Seltzer™ (Consumer Care)

 

74

81

+9.5

+0.5

 

225

251

+11.6

−1.7

Total

 

833

927

+11.3

+12.1

 

2,652

3,794

+43.1

+5.4

Proportion of Consumer Health sales

 

40%

41%

 

 

 

38%

42%

 

 

Business in the Consumer Care Division improved by 6.1% (Fx & portfolio adj.) to €6,076 million. Sales of our analgesic Aspirin™ were up slightly against the prior year, due particularly to gains in Latin America and Europe that more than offset the decline in the United States. We grew sales of our analgesic Aleve™, mainly because of price and volume increases in Latin America / Africa / Middle East. Our skincare product Bepanthen™ / Bepanthol™ posted considerably higher sales, particularly in the Emerging Markets. Business with our antifungal product Canesten™ showed pleasing development thanks to expanded volumes in all regions. The Alka-Seltzer™ family of products to treat gastric complaints and cold symptoms registered a decline in demand particularly in the United States that was due partly to a weaker cold season.

We achieved sales of €1,770 million in 2015 with the business acquired from Merck & Co., Inc., United States, including €380 million in the fourth quarter of 2015 (Q4 2014: €289 million). We substantially raised sales of our antihistamine Claritin™ compared with the fourth quarter of the previous year, thanks in part to an extended allergy season in the United States. Driven mainly by higher prices in the United States, business with our Dr. Scholl’s™ (only in certain countries outside the European Union) foot care products also showed pleasing development.

Sales of the Medical Care Division increased by 2.9% (Fx & portfolio adj.) to €1,563 million, mainly as a result of positive development in the United States. Business with our MRI contrast agent Gadovist™ showed encouraging growth in all regions.

Sales of the Animal Health Division rose by 4.5% (Fx & portfolio adj.) to €1,490 million. Our Seresto™ flea and tick collar made a significant contribution to this development, particularly in the United States and Europe. Sales of the Advantage™ family of flea, tick and worm control products receded slightly, however, mainly due to increased competition.

EBIT of the Consumer Health segment improved by 13.1% in 2015 to €1,243 million. Special charges amounted to €346 million (2014: €45 million) and mainly comprised €225 million in integration costs for acquired businesses, €76 million for efficiency improvement measures and €41 million in costs associated with the relocation of a production facility. EBIT before special items significantly rose by 38.9% to €1,589 million. EBITDA before special items improved by a substantial 34.1% to €2,224 million. The earnings contributions from the expansion of business in all divisions and positive currency effects of €110 million were partly offset in particular by higher selling expenses associated especially with the newly acquired consumer care businesses.