Bayer AG, a German multinational pharmaceutical company, plans to invest $1 billion in drug research and development in the US as it seeks to double its sales in the country by the end of the decade. The company aims to build up its portfolio of new drugs to improve share prices, which have been impacted by concerns over litigation surrounding weedkiller Roundup and a lack of trust in the company’s leadership. In this article, we’ll explore Bayer’s strategy for success and their new drug portfolio.
Bayer’s Strategy for Success:
Sebastian Guth, president of Bayer’s pharmaceuticals business in the Americas, in an interview about the company’s plans for growth in the US market. Bayer has raised the number of US employees working on marketing for its pharmaceutical business by around 50% over the last three years, and plans to expand on that by another 75% by 2030. Guth notes that it’s time for Bayer to double down on the US market and that the company plans to sell the drugs it is developing itself in the country, rather than partnering with US companies like it has in the past.
Investment in Drug Research and Development:
Bayer’s $1 billion investment in drug research and development in the US demonstrates the company’s commitment to expanding its presence in the market. Guth believes that Bayer has a real opportunity to double its business in the US by focusing on its new drug portfolio. The company is looking to develop drugs that address unmet medical needs and has identified cancer drug Nubeqa, kidney medication Kerendia, experimental stroke drug asundexian, and experimental women’s health drug elinzanetant as its top pipeline assets.
New Drug Portfolio:
Bayer’s new drug portfolio includes cancer drug Nubeqa, which has shown promise in clinical trials and has been approved by the FDA. The company expects peak sales of 1 billion euros from Nubeqa, and Guth expects more than half of those sales to come from the US. Kidney medication Kerendia has also been approved by the FDA and is expected to generate peak sales of 1.5 billion euros. Bayer is also focusing on developing two experimental drugs: stroke drug asundexian and women’s health drug elinzanetant.
Challenges for Bayer:
Bayer has faced challenges in the past, including concerns over litigation surrounding weedkiller Roundup and a lack of trust in the company’s leadership. The company has named a new CEO, former Roche executive Bill Anderson, to replace embattled CEO Werner Baumann. Guth’s plans for growth in the US market will be critical to Bayer’s success in the future.
Bayer’s $1 billion investment in drug research and development in the US and their commitment to expanding their presence in the market demonstrate the company’s dedication to growth. By focusing on developing drugs that address unmet medical needs, Bayer is well-positioned to succeed in the US market. While the company has faced challenges in the past, their new CEO and strong new drug portfolio give them reason to be optimistic about the future.