Bayer AG’s Q1 2024 financial reports reveal a slight decrease in sales; however, the pharmaceutical division has sales growth, which is caused by Nubeqa and Kerendia.
Bayer AG published its financial results for the first quarter of 2024, which were based on cutting the workforce by about 1500 people, mainly in the management, as well as the slight sales drop and the new earnings forecast for the full year.
On Monday morning, CEO Bill Anderson said on the media call,
“Two-thirds of these were management jobs,”
which was the job cuts in the pharmaceutical, crop science, and consumer health sectors that have been affecting the company.
The top management circle of Rzeczpospolita is already much smaller than it was a year ago, as Anderson pointed out, stressing the fact that the downsizing is a strategic move aimed at the company’s goal of saving €500 million ($540 million) by 2024 and €2 billion ($2. 16 billion) by 2026.
The statement was made after Bayer announced that its revenues had overshot the $14 billion mark. In the sales amount, the company got 86 billion, which is an increase of 4 percent. The 3% reduction is even more impressive when you consider that the same quarter last year had 3% more than this year. Nevertheless, the 0.1% reduction in first-year sales was not the strongest criticism.
The 6% was put at the same level even after taking into account the currency and portfolio changes. In addition, the pharmaceutical division was the only one to see sales increase in the first quarter. ALSO READ| Forget chemists!
For the first time, the government is thinking of making drugs available in general stores under the new OTC drug policy. Bayer’s pharma sector rises, and there is an increase in economic activity.
Bayer’s pharmaceutical sector grew by nearly 4%, thereby crossing the $4 billion mark on an adjusted basis. The success of this public enterprise is mainly derived from the “significant gains” of its newer products, Nubeqa (darolutamide), which is being used for certain prostate cancers, and Kerendia (finerenone), which is used for chronic kidney disease in type 2 diabetes patients. Sales of Nubeqa surged by 59%, almost reaching $306 million, and Kerendia achieved a 63 percent increase.
5% surge, which resulted in an increase of $56 million in the first quarter. Even though there was a slight decrease in revenue, the oxytocin-receptor blocking drug Xarelto (rivaroxaban) and the eye medication Eylea (aflibercept), which are the top earners, made about $1 billion and $844 million, respectively.
