Core Insights - Bayer has received approval from the European Commission for the label expansion of Kerendia (finerenone) to treat adults with heart failure with left ventricular ejection fraction (LVEF) ≥40% [1][8] Group 1: Drug Approval and Efficacy - The approval is based on the phase III FINEARTS-HF study, which showed that finerenone significantly reduced cardiovascular death and heart failure events compared to placebo [3][8] - Heart failure affects over 64 million people globally, with at least 15 million in Europe, and approximately half of these patients have LVEF ≥40% [4] Group 2: Market Presence and Sales Performance - Finerenone is already marketed as Kerendia in over 100 countries, including major markets like China, Europe, Japan, and the United States, primarily for chronic kidney disease associated with type II diabetes [2] - Kerendia generated sales of €829 million in 2025, reflecting a 79% increase from 2024, contributing to the growth of Bayer's pharmaceutical unit [6][8] Group 3: Ongoing Research Programs - The FINEARTS-HF study is part of the larger MOONRAKER program, which is one of the largest phase III initiatives in heart failure, enrolling over 15,000 patients [5] - The THUNDERBALL program focuses on chronic kidney disease and includes several completed and ongoing studies aimed at expanding the use of finerenone [6] Group 4: Company Performance and Strategy - Bayer's stock has surged 84.4% over the past year, significantly outperforming the industry average gain of 8.6% [7] - The company is focusing on expanding its portfolio with new products like prostate cancer drugs Nubeqa and Kerendia, which are performing well despite declines in other areas [9]

Core Insights - Bayer's finerenone has achieved a significant milestone by meeting the primary endpoint in the FIND-CKD study, expanding its application to non-diabetic chronic kidney disease (CKD) patients [1][8] - The phase III study demonstrated that finerenone, when added to standard care, significantly slowed kidney function decline compared to placebo, as indicated by the annual change in eGFR [2][8] - Finerenone is already approved for treating CKD associated with type II diabetes in over 100 countries, and Bayer plans to submit data to extend its indication for non-diabetic CKD [4][8] Drug Development and Efficacy - Finerenone is a non-steroidal, selective mineralocorticoid receptor antagonist designed to mitigate the adverse effects of mineralocorticoid receptor overactivation, which contributes to CKD progression and cardiovascular damage [3] - The FIND-CKD study is the largest phase III trial conducted in non-diabetic CKD, evaluating finerenone across a diverse patient population [5] - This study marks the fifth successful phase III trial for finerenone, which has been assessed in over 20,000 patients across CKD and heart failure populations, reinforcing its role in cardiorenal disease [6] Financial Performance and Market Position - Bayer's shares have increased by 70.2% over the past year, significantly outperforming the industry average gain of 9.8% [4] - The company reported fourth-quarter results that missed sales expectations, but new products like finerenone and prostate cancer drug Nubeqa are driving momentum in the Pharmaceutical division [11] - The strong performance of finerenone is compensating for declining sales of Xarelto and pressures on Eylea sales due to generics [12] Regulatory and Market Expansion - Bayer is pursuing regulatory filings to expand Kerendia's indication following the positive results from the FIND-CKD study [4][8] - The finerenone clinical development program, FINEOVATE, includes 10 phase III trials focusing on heart failure and CKD, indicating a robust pipeline for the drug [9][10] Legal and Investor Sentiment - Recent developments in the Roundup litigation have positively influenced investor sentiment, as Bayer navigates ongoing lawsuits related to glyphosate [16][17] - An agreement with plaintiffs' law firms on a proposed class settlement regarding glyphosate litigation marks a significant step for the company [17]

Core Insights - Bayer AG has received preliminary approval for a proposed class action settlement regarding Roundup litigation, which aims to resolve claims that Roundup caused non-Hodgkin lymphoma [1][10] - The settlement framework is part of Bayer's strategy to manage its long-standing Roundup litigation exposure, which has negatively impacted investor sentiment [3] - A fairness hearing is scheduled for July 9, 2026, to determine final approval of the settlement [2] Legal Developments - The Missouri Circuit Court judge's approval allows for a 90-day opt-out and objection period for potential class members, ending on June 4, 2026 [2] - The U.S. Supreme Court is reviewing the Durnell case, which may influence state-level failure-to-warn claims related to Roundup [4] - Bayer has set aside $11.3 billion (€9.6 billion) for glyphosate litigation as of December 31, 2025, reflecting the significant costs incurred from ongoing lawsuits [7][10] Company Performance - Bayer's shares have increased by 64.1% over the past year, significantly outperforming the industry average gain of 8.6% [9] - Despite missing sales targets in the fourth quarter, Bayer's overall performance in 2025 was strong, driven by new products in the Pharmaceutical division [11] - The FDA has granted approvals for several new drugs, including elinzanetant and Hyrnuo, which are expected to enhance sales [12][13] Future Outlook - Bayer anticipates that litigation impacts will continue to affect its cash position in 2026 [14] - The company is focused on expanding its product portfolio and addressing legal liabilities to improve investor confidence and financial stability [3][11]

Core Insights - Bayer AG reported fourth-quarter 2025 core earnings of 18 cents per American Depositary Receipt (ADR), matching the Zacks Consensus Estimate, but down 41% year over year from 28 cents per ADR in the previous year [1][2] - Total sales for the quarter were $13.31 billion, a decrease of 2.5% on a reported basis, falling short of the Zacks Consensus Estimate of $13.41 billion [2][8] - Bayer's shares have increased by 66.4% over the past year, significantly outperforming the industry average gain of 9.1% [2] Financial Performance - Bayer's revenues for 2025 totaled $51.5 billion, missing the Zacks Consensus Estimate of $53.2 billion, and reflecting a 2.2% decline from 2024 [15] - Core earnings per ADR for 2025 were $1.39, also below the Zacks Consensus Estimate of $1.41 [15] Segment Performance - Crop Science sales rose 6.3% to €5.4 billion, with Corn Seed & Traits sales increasing by 28.5% due to strong performance in North America and Latin America [5] - The Pharmaceuticals segment saw a 1.7% increase in sales to €4.5 billion, driven by strong sales of Nubeqa and Kerendia, although offset by declines in Xarelto and Eylea [9][12] - Consumer Health sales decreased by 4.6% to €1.5 billion, primarily due to a decline in the Allergy & Cold business [14] Future Guidance - For 2026, Bayer expects sales in the range of €45-€47 billion, with flat to modest growth anticipated across all divisions [16] - Core EPS is projected to be between €4.30 and €4.80 [16] Product Developments - New products like Nubeqa and Kerendia continue to show strong momentum, helping to mitigate declines in other areas [18] - The launch of Eylea 8 mg has partially offset declines in Eylea sales, which faced pressure from generics [10][18] - Recent FDA approvals for drugs like elinzanetant and Hyrnuo are expected to further enhance sales [19][20] Legal and Regulatory Updates - Bayer has reached a proposed class settlement regarding the Roundup litigation, which has positively impacted investor sentiment [21][22] - The company anticipates that litigation impacts may burden its cash position in 2026 [22]

CORPORATE OVERVIEW Bayer AG March 2026 Cautionary Statements Regarding Forward-Looking Information This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. 2 /// Bayer AG /// Corporate Overview /// March 2026 Global Leader in Health & Nutrition: Uniquely Positioned to Meet Basic Needs of Humankind Crop Science Pharmaceuticals Various known and unknown risks, uncertainties and other factors could lead to material differences between the act ...

Industry Overview - The drug and biotech sector has shown recovery in 2026 after a muted 2025, driven by drug pricing agreements, strong quarterly results, a bullish outlook, robust pipeline activity, and M&A deals [1] - The industry faces challenges such as pipeline setbacks, slow ramp-up of new drugs, patent cliffs, regulatory risks, and pricing uncertainty [1] - Despite these challenges, the focus on innovation and positive developments in pipelines and regulations indicate a favorable long-term outlook for the industry [1] Key Players - Eli Lilly (LLY), Johnson & Johnson (JNJ), Sanofi (SNY), and Bayer (BAYRY) are highlighted as strong candidates for investment [2] Industry Characteristics - The Zacks Large Cap Pharmaceuticals industry includes major global companies developing multi-million-dollar drugs across various therapeutic areas, with a strong emphasis on continuous innovation and significant R&D investment [3] - The industry is characterized by aggressive M&A activities, with large pharmaceutical companies acquiring smaller biotech firms to enhance their pipelines [6][7] Innovation and Pipeline - Innovation is crucial for growth, with companies integrating AI and new technologies like gene editing and mRNA vaccines to enhance drug discovery [4] - Key therapeutic areas attracting investment include rare diseases, oncology, obesity, immunology, and neuroscience [5] M&A Activity - The sector has seen a resurgence in M&A activity in 2026, particularly in fast-growing markets like oncology and rare diseases [8] - Recent multi-billion-dollar deals have been made by companies like Pfizer, Novo Nordisk, and Roche targeting metabolic and obesity-related diseases [8] Financial Performance - The industry has outperformed the Zacks Medical Sector but underperformed the S&P 500 over the past year, with a collective rise of 10.8% compared to the S&P 500's 20.5% [14] - The current forward 12-month P/E ratio for the industry is 18.70X, lower than the S&P 500's 20.77X [16] Company Highlights - **Eli Lilly**: Achieved significant sales from Mounjaro and Zepbound, generating $36.5 billion in 2025, and expects continued growth from new therapies [19][20] - **Johnson & Johnson**: Targeting $100 billion in revenues for 2026, with strong growth in its Innovative Medicine unit and MedTech business [25][26] - **Sanofi**: Strong growth from its immunology drug Dupixent and a robust vaccine portfolio, although facing challenges from generic erosion and pipeline setbacks [31][32] - **Bayer**: Growth driven by key drugs like Nubeqa and Kerendia, with ongoing pipeline expansion and recent drug approvals [34][35]

Group 1 - Bayer has filed a lawsuit in a New York court against Johnson & Johnson and Janssen Biotech Inc concerning its Nubeqa prostate cancer drug [1] - The lawsuit indicates ongoing legal disputes in the pharmaceutical industry, particularly regarding drug patents and market competition [1] - Bayer is a German pharmaceutical and chemical company, while Johnson & Johnson is a major player in the healthcare sector [1][3] Group 2 - The lawsuit reflects Bayer's strategic actions to protect its product offerings and market position in the oncology sector [1] - Johnson & Johnson and its subsidiary Janssen Biotech Inc are involved in the litigation, highlighting the competitive landscape in the pharmaceutical market [1][3] - The case may have implications for future drug development and patent rights within the industry [1]

Core Insights - The pharmaceutical industry is increasingly leveraging artificial intelligence (AI) to enhance drug development efficiency and reduce costs, with companies like In Silico demonstrating significant advancements in this area [1][2][8] - A notable trend is the shift from traditional acquisition strategies to targeted deals that focus on acquiring specific assets, particularly in response to impending patent expirations [4][10][14] AI in Drug Development - In Silico has showcased the potential of AI in drug development, reporting an average of 13 months from project initiation to candidate selection for its drug rentosertib, which has shown positive signals in increasing lung function in a Phase IIa study [1] - AI-driven tools are sought by pharmaceutical companies to enhance internal R&D productivity and streamline the drug development process [2][3] Patent Expirations and Industry Response - The upcoming patent cliff between 2024 and 2030 is projected to reduce the global share of drugs protected under patents from 6% to 4%, resulting in an estimated loss of $236 billion in US revenues [6][7] - The industry is witnessing a surge in deal-making as companies seek to replenish their drug pipelines in light of patent expirations, with AI partnerships becoming increasingly common [7][9] Changing Acquisition Strategies - Pharmaceutical companies are moving away from large-scale mergers and acquisitions (M&A) towards smaller, asset-specific acquisitions to mitigate revenue losses from patent expirations [10][14] - Companies like Eli Lilly and AstraZeneca are actively pursuing AI capabilities through strategic partnerships, indicating a shift in mindset towards more targeted investments [4][11] Market Dynamics and Future Trends - The hierarchy of top-selling drugs is shifting, with a growing focus on metabolic disorders and peptide-based drugs, while oncology remains a significant area of interest [16][17][18] - Companies are also exploring secondary patents and trademarks as strategies to extend the lifecycle of branded drugs and maintain revenue streams despite patent expirations [20][22] Conclusion - AI is positioned as a transformative force in the pharmaceutical industry, with the potential to reshape drug development timelines and strategies for managing patent cliffs, although its impact may vary [23]

Core Insights - Bayer presented positive results from the late-stage OCEANIC-STROKE study for its investigational oral factor XIa inhibitor asundexian, showing significant efficacy in secondary stroke prevention [1][2][9] Group 1: Study Results - The OCEANIC-STROKE study involved 12,327 patients and demonstrated that asundexian (50 mg once daily) significantly reduced the risk of recurrent ischemic stroke by 26% compared to placebo, without increasing the risk of major bleeding [3][4][9] - The primary endpoint was the time to ischemic stroke, while the primary safety endpoint focused on major bleeding events [3] Group 2: Regulatory and Market Potential - Asundexian has received Fast Track designation from the FDA for stroke prevention, and Bayer plans to submit the study data for marketing approval, indicating strong regulatory momentum [5][9] - The drug is viewed as a potential blockbuster in a market with a high risk of recurrent strokes, which could significantly enhance Bayer's cardiovascular portfolio [5] Group 3: Cardiovascular Portfolio Development - Bayer's cardiovascular portfolio includes Kerendia, which received FDA approval for heart failure treatment in 2025, and is the only non-steroidal mineralocorticoid receptor antagonist approved for chronic kidney disease associated with type 2 diabetes [6][7] - The company is also advancing next-generation assets, including AB-1002 for congestive heart failure and aficamten for hypertrophic cardiomyopathy, further strengthening its precision cardiology portfolio [10][11] Group 4: Financial Performance - Bayer's shares have increased by 151.9% over the past year, significantly outperforming the industry average of 14%, driven by new drug approvals and positive pipeline developments [12] - The performance of new drugs like Nubeqa and Kerendia has offset declines in Xarelto sales, indicating a robust pharmaceutical division [13]

Core Viewpoint - Bayer AG's shares increased by 6.41% following the announcement that the Supreme Court will review the Durnell Roundup case, which is significant for the company's ongoing litigation related to its glyphosate-based herbicide Roundup [1][9]. Legal Developments - The Supreme Court's review will address a split among federal circuit courts regarding federal preemption, a key issue in the Roundup litigation [2][9]. - The Solicitor General has supported the review, emphasizing the need to resolve the circuit split and advocating for a ruling in favor of Bayer [3][4]. - The Durnell case resulted in a jury awarding $1.25 million in damages for failure to warn, with Monsanto appealing the verdict [6]. Litigation Status - As of October 15, 2025, Bayer has resolved approximately 132,000 of nearly 197,000 claims related to glyphosate, with a reserve of $7.6 billion set aside for ongoing litigation [10][9]. - Bayer has experienced a mix of outcomes in 28 concluded Roundup-related trials, securing favorable results in 17 cases [8]. Financial Performance - Bayer's shares have surged by 138.5% over the past year, significantly outperforming the industry average of 24.1%, driven by new drug approvals and improved performance in its Crop Science business [11]. - The company has seen strong sales from new products like prostate cancer drug Nubeqa and kidney disease drug Kerendia, which have offset declines in sales from Xarelto [12]. Drug Approvals - Bayer recently received FDA approval for elinzanetant for menopause-related symptoms and accelerated approval for Hyrnuo for lung cancer treatment, which are expected to enhance sales [15][16]. - The expansion of key drugs and the approval of additional products are anticipated to further boost sales in Bayer's pharmaceutical division [18].