Bayer Q3 Earnings Miss Estimates, Nubeqa, Kerendia Boost Sales

Core Insights - Bayer AG reported third-quarter 2024 core earnings of 7 cents per ADR, missing the Zacks Consensus Estimate of 17 cents, and down from 10 cents per ADR in the same quarter last year [1] - Core earnings of €0.24 per share decreased by 36.8% year over year due to impairment losses in the Crop Science division [1] - Total sales for the quarter were $10.9 billion (€9.9 billion), reflecting a 3.6% decline on a reported basis, although sales increased by 0.6% year over year on a currency and portfolio-adjusted basis [1][2] Segment Performance - Crop Science sales fell by 3.6% to €4 billion, with herbicides down 11.5% due to volume declines in glyphosate-based products, primarily due to normalized purchasing patterns in Latin and North America [3] - Fungicides sales increased by 13.1%, while Corn Seed & Traits sales decreased by 19.3% due to acreage declines in Latin America [4] - Pharmaceuticals segment revenues rose by 2.3% to €4.5 billion, with Nubeqa sales surging 83.2% to €417 million and Kerendia sales increasing by 96.4% [5] - Sales of Xarelto decreased by 23% to €802 million due to competitive pressure from generics [6] - Eylea sales increased by 8.6% to €848 million, driven by higher volumes in Europe and Japan [7] - Consumer Health sales rose by 5.7% to €1.4 billion, supported by strong demand in Dermatology and Pain & Cardio categories [8] Guidance and Forecast - Bayer reiterated its 2024 sales guidance, expecting total sales between €47 billion and €49 billion [9] - The company revised its forecast for divisional sales, expecting Crop Science sales growth to decline by 1% to 3%, while Pharmaceuticals is expected to grow flat to 3% [10][11] Pipeline Updates - Bayer received regulatory approval for the Eylea 8 mg pre-filled syringe in the EU and filed a new drug application for Nubeqa for a new cancer indication [12] - The FDA accepted the NDA for elinzanetant, an investigational compound for treating menopause-related symptoms [13] Overall Performance Assessment - Bayer's third-quarter performance showed a decline in earnings due to impairment losses in the Crop Science division, but the Pharmaceuticals division exhibited encouraging sales growth [14] - New products like Nubeqa and Kerendia are expected to drive future growth, despite challenges in the Crop Science segment [15]