Bayer raises sales targets for top-selling drugs after Monsanto deal
- Top 10 News for 9/26 - 9/30: Deutsche Bank Soars on Settlement; Twitter Back in the M&A Fray; Nike 'Just Didn't Do It' in Q1
- Wall Street rallies, led by Deutsche Bank, financials
- Viacom (VIAB) Forms Special Committee; Will Explore Potential Combination with CBS (CBS)
- Deutsche Bank (DB) Said Near $5.4B Settlement with U.S. - AFP
- Oil up second straight month on OPEC-fueled rally
The logo of Bayer AG is pictured at the Bayer Healthcare subgroup production plant in Wuppertal, Germany February 24, 2014. REUTERS/Ina Fassbender/File Photo
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
By Ludwig Burger
FRANKFURT (Reuters) - German drugmaker Bayer
Bayer now expects annual peak sales of more than 5 billion euros ($5.6 billion) for stroke prevention pill Xarelto, jointly sold with Johnson & Johnson (NYSE: JNJ), where it had previously seen about 3.5 billion.
For the eye medicine Eylea, jointly developed with Regeneron (NASDAQ: REGN), it now sees peak sales potential of more than 2.5 billion euros, up from at least 1.5 billion previously.
Also underpinned by cancer drug Xofigo and pulmonary hypertension treatment Adempas, the group's prescription drugs unit aims to increase earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for special items, to 32-34 percent of sales in 2018, up from 30.1 percent last year.
The smaller animal health unit could also slightly increase margins, Bayer said.
In consumer health, previously boosted by the acquisition of brands from Merck & Co (NYSE: MRK), it now sees sales adjusted for currency swings growing by between 4 and 5 percent by the end of 2018 and an adjusted EBITDA margin of about 25 percent, up from 24 percent in 2015.
Bayer has "underestimated the country risk from Emerging Markets volatility", the company said in presentation slides.
It also cited "stronger business disruption than anticipated during the integration of Merck Consumer Care and Dihon in China", referring to a Chinese non-prescription drugs unit it acquired in 2014.
"2018 EBITDA guidance for Pharma and Animal Health may ... offer some upside against consensus, though the consumer margin guidance may disappoint slightly," Jefferies analysts said in a note to investors.
Bayer shares were seen 1.5 percent higher in premarket trading at brokerage Lang & Schwarz, where the overall German market was seen little changed ahead of the official market open at 0700 GMT.
(Reporting by Ludwig Burger; editing by Tina Bellon and Jason Neely)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Costco Wholesale (COST) Tops Q4 EPS by 4c; Comps Rose 3%
- BMO Capital Reiterates Outperform on Pepsi (PEP) Following Solid 3Q
- Jefferies Downgrades Core-Mark Holding (CORE) to Hold
Create E-mail Alert Related CategoriesReuters
Related EntitiesJefferies & Co, Earnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!