Bayer AG (BAYRY) reported second-quarter 2024 core earnings of 25 cents per American Depositary Receipt (ADR), on par with the Zacks Consensus Estimate. The company reported earnings of 33 cents per ADR in the year-ago quarter. Core earnings of €0.94 per share deteriorated 23% year over year due to a decline in earnings at the Crop Science Division. Total sales in the reported quarter were $12 billion (€11.14 billion), up 0.9% on a reported basis as volume growth of 1.6% and positive pricing impact of 1.5% ...

///////////// Health for all, Hunger for none Q2 2024 Investor Call A u g u s t 0 6 , 2 0 2 4 Cautionary Statements Regarding Forward-Looking Information This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Thes ...

Core Insights - Bayer's darolutamide in combination with androgen deprivation therapy (ADT) has shown significant improvement in radiological progression-free survival (rPFS) compared to placebo plus ADT in patients with metastatic hormone-sensitive prostate cancer (mHSPC) [10] - The treatment was well tolerated and exhibited a safety profile consistent with previous studies in advanced prostate cancer [1][10] - Bayer plans to submit study data to global health authorities for regulatory applications to expand darolutamide's label in mHSPC patients [12] Company Developments - Darolutamide is already approved under the brand name Nubeqa for non-metastatic castration-resistant prostate cancer in over 85 countries and in combination with ADT and docetaxel for mHSPC in more than 80 markets, including the US, Japan, EU, and China [4] - The ARANOTE study is part of a broader clinical development program for darolutamide, which includes various stages of prostate cancer treatment [5] - Bayer's stock gained 3.3% following the announcement of the study results, although it has seen a year-to-date decline of 21.1% compared to the industry's growth of 23.4% [11] Industry Context - Prostate cancer is the second most prevalent cancer and the fifth leading cause of cancer-related deaths among men globally, with approximately 1.4 million diagnoses and around 375,000 deaths in 2020 [6] - The ongoing evaluation of darolutamide in a late-stage study for localized prostate cancer with a high risk of recurrence indicates the company's commitment to addressing various prostate cancer stages [3]

Company Overview - Bayer's subsidiary Asklepios BioPharmaceutical has initiated recruitment for the mid-stage study REGENERATE-PD, which evaluates the efficacy and safety of AB-1005 for moderate-stage Parkinson's disease [17] - The experimental gene therapy AB-1005 has shown promising results in a phase Ib study, achieving its primary endpoint of safety with no serious adverse events reported in 11 patients over 18 months [4][5] Clinical Trials and Research - REGENERATE-PD is a phase II study involving an estimated 87 subjects, with treatment involving bilateral image-guided infusion of AAV2-GDNF into the putamen [2][3] - The decision to advance AB-1005 to phase II followed positive results from the phase Ib study and the presentation of 18-month data at a neurology meeting [4] - AskBio is also exploring GDNF therapy for other conditions, including the parkinsonian subtype of multiple system atrophy (MSA-P) in a phase I study [8] Market Context - Bayer's stock has declined by 24.1% year to date, contrasting with the industry's growth of 23.1% [9] - The company faces challenges with pipeline and regulatory setbacks, necessitating successful delivery from its clinical pipeline [11] Future Prospects - Bayer anticipates that AB-1005 could have a transformative impact on Parkinson's disease treatment [7] - The company is also advancing other clinical programs across various disease indications, including congestive heart failure and Huntington's disease [7]

Financial Performance - The company's Q1 2024 sales were €13.8 billion, slightly below the same period last year, with core earnings per share at €2.82, also slightly below prior year [4][16] - Free cash flow was reported at minus €2.6 billion, an improvement over the previous year's Q1, primarily due to lower litigation payouts [4][17] - EBITDA before special items was €4.4 billion, down 1% from the prior quarter, impacted by lower glyphosate pricing and foreign exchange headwinds [16][18] Business Line Performance - **Crop Science**: Sales were €7.9 billion, down 3% year-over-year, with glyphosate sales declining by 6% due to lower prices, although corn business saw a 6% average global price increase [18][19] - **Pharmaceuticals**: The division experienced a 4% sales growth, driven by strong performance from launch products like Nubeqa and Kerendia, with Eylea also showing solid gains [19][21] - **Consumer Health**: Sales declined by 2%, primarily due to a 17% drop in the allergy and cold business, but the company is optimistic about new product launches like Iberogast [22][23] Market Performance - The Crop Science division outperformed peers in a challenging market, with global corn platform growth despite declining acreage in North America and Latin America [4][18] - Pharmaceuticals faced headwinds from generics impacting Xarelto sales, particularly in Canada and parts of Europe, but overall growth was maintained [20][21] - Consumer Health's performance was affected by a mild cold and flu season, leading to inventory optimization by retailers [22][23] Company Strategy and Industry Competition - Bayer is focused on innovation and growth, with significant investments in new product launches and partnerships, such as the exclusive rights to market a biological insecticide [7][14] - The company is implementing Dynamic Shared Ownership to enhance decision-making and operational efficiency across divisions [11][12] - Bayer aims for sustainable cost savings of €500 million in 2024 and $2 billion by 2026, with a focus on cash generation and financial health [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges, citing improvements in cash flow and operational execution [6][17] - The outlook for Crop Science remains positive, expecting growth in core business despite lower pricing for glyphosate [23][24] - Pharmaceuticals is anticipated to face increasing headwinds for Xarelto, but overall guidance for the division remains intact [23][24] Other Important Information - A Washington State Court recently overturned a $185 million verdict in favor of Bayer, which could have implications for future litigation [8] - The company received overwhelming support for its dividend proposal at the annual stockholders meeting, indicating strong shareholder confidence [10] Q&A Session Summary Question: Can you provide more details on Xarelto's regional performance? - Management acknowledged mixed results for Xarelto, with growth in some regions but setbacks in France and the US due to generics entering the market [26][28] Question: What drove the improvement in free cash flow? - The improvement was largely due to lower litigation-related payouts compared to the previous year, with operational performance also contributing positively [29] Question: How is the spring season playing out in the US for Crop Science? - The company is confident in achieving growth despite lower corn planted acres, with strong soybean sales anticipated [30][31] Question: What are the key growth drivers for Nubeqa and Kerendia? - Management highlighted the strong performance of Nubeqa and the potential of Kerendia, with ongoing developments expected to contribute to peak sales [34][35] Question: What are the expectations for herbicides and fungicides in Q2? - The company expects a recovery in sales for herbicides and fungicides in Q2, contingent on weather conditions and market dynamics [39][40]

Bayer AG (BAYRY) reported first-quarter 2024 core earnings of 77 cents per American Depositary Receipt (ADR). The company reported earnings of 79 cents per ADR in the year-ago quarter. Core earnings of €2.82 per share declined 4.4% year over year. Total sales in the reported quarter were $14.95 billion (€13.77 billion), down 4.3% on a reported basis. On a currency and portfolio-adjusted basis, sales declined 0.6% year over year. All growth rates mentioned below are on a year-over-year basis after adjusting ...

///////////// Health for all, Hunger for none | --- | --- | --- | --- | |-------|-------|-------|-------| | | | | | | | | | | Cautionary Statements Regarding Forward-Looking Information This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company an ...

Bayer AG (BAYRY) announced positive top-line results of the phase III study, OASIS 3, evaluating the efficacy and long-term safety of pipeline candidate elinzanetant compared to placebo.Elinzanetant, a dual neurokinin-1,3 (NK-1,3) receptor antagonist, is in late-stage clinical development for the non-hormonal treatment of moderate to severe vasomotor symptoms (VMS) associated with menopause, administered orally once daily.OASIS 3 is the third phase III study in the OASIS clinical development program. The st ...

Bayer AG (BAYRY) reported fourth-quarter 2023 core earnings of 50 cents per American Depositary Receipt (ADR), which beat the Zacks Consensus Estimate of 45 cents. The company reported earnings of 34 cents per ADR in the year-ago quarter.Core earnings of €1.85 per share rose 37% year over year in the fourth quarter of 2023.Total sales in the reported quarter were $12.77 billion (€11.86 billion), down 1.2% on a reported basis. On a currency and portfolio-adjusted basis, sales rose 5.5% year over year.All gro ...

Bayer (BAYRY) announced that it has acquired the exclusive marketing rights for cardiovascular candidate acoramidis in Europe from BridgeBio (BBIO) . The rights were acquired from Eidos Therapeutics Inc., BridgeBio International GmbH and BridgeBio Europe B.V.Acoramidis is an investigational, next-generation, orally-administered, highly potent small molecule stabilizer of transthyretin (TTR).  It is being evaluated for the treatment of patients suffering from transthyretin amyloid cardiomyopathy (ATTR-CM).In ...