Bayer CEO says tougher cash outlook will be considered in overhaul
Reuters
Published Nov 21, 2023 10:27AM ET
By Ludwig Burger and Patricia Weiss
FRANKFURT (Reuters) - Bayer (OTC:BAYRY)'s strategic review will consider a potentially tougher outlook for cash flows, its CEO said on Tuesday, after the German conglomerate suffered a major drug development setback.
The group late on Sunday aborted a large late-stage trial testing a new anti-clotting drug due to lack of efficacy, throwing its most promising development project in doubt, and adding to litigation and debt problems.
"Anything that effects future cash flows negatively just makes that a little tighter," CEO Bill Anderson said in an analyst call on Tuesday.
"The impact of these recent events does not change what our strategic options are. It just may mean that some of those conditions are a little tighter," said Anderson, who has said he is considering a break-up of the maker of pharmaceuticals, non-prescription treatments and products for farmers.
He gave the example that a potential sale of the consumer products unit to a rival in the industry would generate more cash, and faster, than a partial spin-off on the stock market and gradual sale of any remaining shares over time.
The head of pharmaceuticals, Stefan Oelrich, said in the call that when reviewing the halted trial his team was surprised by a "marked difference" in efficacy of Bayer's experimental anticoagulant asundexian in comparison to Bristol-Myers Squibb (NYSE:BMY) and Pfizer (NYSE:PFE)'s established Eliquis.
The peak sales potential of more than 5 billion euros would be revised lower, but plans to bring the product to market in 2026 remained in place, albeit for a smaller patient group, Oelrich added.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.