Bayer AG is a German chemical and pharmaceutical company founded in Barmen (now part of Wuppertal, Germany) in 1863. Its headquarters are located in Leverkusen, North Rhine-Westphalia (Germany). Heroin and aspirin, originally Bayer brands, brought the company widespread fame.
The Bayer concern represents over 350 companies in all countries of the world. Number of personnel - 106.2 thousand employees.
The Bayer Group's turnover in 2008 was €32.9 billion, net profit - €1.7 billion, operating profit - €3.5 billion.
To separate operational and strategic management, Bayer AG was transformed into a holding company in 2003. The divisions forming the core of the group were transformed into limited liability companies controlled by Bayer AG.
These include:
There are also three service companies: Bayer Technology Services GmbH, Bayer Business Services GmbH and Bayer Industry Services GmbH & Co. OHG.
After the reorganization, the company's chemical production facilities (with the exception of H.C. Stark and Wolff Walsrode) were merged with some divisions of the polymer segment and formed a new company, Lanxess, on July 1, 2004. Lanxess was listed on the Frankfurt Stock Exchange in early 2005.
Diagnostics Bayer HealthCare AG was acquired by Siemens Medical Solutions in January 2007.
Linde AG is a German multinational chemical company with branches in many countries around the world. Headquarters in Munich,…
Continental AG is a German manufacturer of tires and auto components. The company ranks 1st in Europe and 4th…
It will sell its veterinary business and over-the-counter lines of Coppertone sunscreen and Dr. Scholl's foot care products. The decision is due to the desire to regain the confidence of investors, irritated by a series of failures and a serious drop in stock prices of the German chemical and pharmaceutical giant. The inventor of aspirin faced massive challenges, from declining demand for consumer goods to the loss of stability in the prescription drug trade.
Bayer's share price is in a prolonged decline. Image: Yahoo! Finance.
Thus, Bayer’s consumer business, which received a serious boost in 2014 thanks to the acquisition Merck & Co.'s similar division for $14.2 billion in cash saw sales decline in the United States as people began shopping more often at online retailers offering additional discounts rather than at brick-and-mortar pharmacies. In the first nine months of 2018, sales of over-the-counter products fell by 7.7%, while in 2017 they lost 2.9%. For example, the demand for Copperstone, the antifungal Canesten, the analgesic, antipyretic and anti-inflammatory Alka-Seltzer and the antiallergic Claritin (loratadine) have already decreased by 15.2%; 12.4%; 11.7% and 11.0% this year.
Image: Alan Diaz/AP. The sale of the Copperstone and Doctor Shoals lines could generate approximately 1 billion euros ($1.14 billion).
The veterinary business generated 1.57 billion euros ($1.77 billion) in 2017, up 3.2% compared to 2016. However, its contribution to the total income of the Bayer group is very insignificant - 4.5%. Currently, Bayer ranks fifth in the animal drugs market, behind Zoetis as an independent part of Pfizer, Elanco as an autonomous company of Eli Lilly, the private German Boehringer Ingelheim and the aforementioned Merck & Co. To scale it up against the backdrop of strengthening competitors, additional funds are needed, which are not currently available.
Bayer's veterinary business needs fresh blood as growth plummets. Image: Bloomberg. The value of this business is estimated 6-7 billion euros ($6.8-7.9 billion).
Acquisition of Monsanto, the world's leading supplier of genetically modified seeds and herbicides, completed in June 2018, at $63 billion. Not only has this plunged the company into major debt (at the end of this year, net debt will approach 37 billion euros), but now it has to sort it out with nearly 10 thousand lawsuits claiming that the herbicide Roundup causes cancer.
In August 2018, a San Francisco court ruled finding that the non-selective systemic herbicide glyphosate contained in Roundup, which is used to control weeds and which ranks first among herbicides in the world in production, is a carcinogen that increases the risk of developing non-Hodgkin's lymphoma in those who work with it. A court ordered $289 million to be paid to a gardener injured by Roundup.
Image: Benoit Tessier/Reuters. It is appropriate to recall that in anticipation of the purchase of Monsanto, industry experts were concerned about the possible destruction of Bayer's pharmaceutical business. The latter defended the chosen strategy and the presence of clear potential for the development of the drug portfolio. Starting in 2020, the German corporation will begin to face the gradual loss of patent protection protecting a couple of its most profitable prescription drugs - the anticoagulant Xarelto (rivaroxaban) and the ophthalmic Eylea (aflibercept).
Patent expiration dates for Bayer prescription drugs. Prescription drugs continue to be Bayer's main moneymaker: they earned €16.85 billion ($19.15 billion) in 2017, accounting for 48% of total revenue of €35 billion ($39.8 billion). . Investment in third-party research partners will be increased, but the idea of friendship with those developers of molecules that are close to entering the market will not be forgotten. But all this is very expensive: for example, in November 2017, a deal with Loxo Oncology for oral selective tropomyosin receptor kinase (Trk) inhibitors, including larotrectinib, cost $1.55 billion in royalties . Be that as it may, Bayer will continue to expand its expertise in such areas of interest as hemophilia and hematology, cardiology, women's health, and oncology.
The layoffs, which will affect 10% of Bayer's 118.2 thousand employees and will be completed by the end of 2021, are distributed as follows: half of the planned employees are employed in corporate, support and commercial structures, a third will lose their jobs in the agricultural business Due to the integration of Monsanto, 1,250 positions will be affected by the pharmaceutical department, and another 1,100 people will leave the OTC division.
Bayer forecasts that the workforce cuts will lead to annual savings of 2.6 billion euros ($2.96 billion) starting in 2022. This amount includes cash resources received due to synergies from the acquisition of Monsanto. However, first you will have to spend about 4.4 billion euros ($5 billion) at a time on expenses related to staff reductions. Lower costs will also help free up funds for planned investments of 35 billion euros ($39.8 billion), which the company expects to invest in development until the end of 2022. Over two-thirds of this budget is allocated to research and development.
If a trader had a long position open with a volume of 1000 shares on the #S-AA instrument before the start of the American trading session on 05/08/2014, then the amount of $30.00 ($0.03*1000) will be credited to his account.
If the trader had a short position, then $30.00 will be debited from his account.
Dividends can be accrued in the form of shares, as well as in a mixed form - part in shares plus part in foreign currency.
In this case, dividends in shares are converted into currency at the current share price.
Tax may be withheld from the accrued positive dividend amendment, as well as a commission for the operation of accruing/writing off the amendment.
">Bayer AG made a cash-backed offer to acquire Monsanto Co. for 62 billion dollars. If the deal is successfully completed, Bayer AG will become the world's largest supplier of agricultural chemicals and genetically modified seeds. Investors believe that the German concern made an overly generous offer.
Bayer offered $122 per share in its offer submitted May 10. The Leverkusen-based company revealed details of the deal on Monday. It turns out that the Germans offered a 37 percent premium in terms of Monsanto shares to the closing prices of trading on May 9. The payment will be financed through a combination of debt and equity, with approximately 25 percent of the purchase price coming from the sale of shares to current owners. Bayer AG shares fell to their lowest level in more than 2 1/2 years, down 3.4 percent at 86.48 euros as of 9:07 a.m. on the Frankfurt stock exchange, their lowest level since October 2013.
The very fact that the offer has been made gives investors an understanding of the management style and ambitions of the company's current CEO, Werner Baumann. He is trying to carry out the largest corporate acquisition for a German group after a month in office. The purchase of the St. Louis company will give Bayer the world's largest seed supplier and a pioneer in biotechnology. Monsanto began trading genetically modified seeds two decades ago and now leads the market for genetically modified corn and soybeans grown in the United States. Monsanto has not yet responded to the proposal, citing its review of the details of the proposed deal.
It is worth noting that previously Monsanto itself acted as a potential buyer. The company sought to buy Swiss pesticide maker Syngenta AG, but the deal never materialized.
Baumann’s own reaction to the fall in the share price of Bayer AG was not long in coming: “What we saw last week in the media cannot be called anything other than an illiterate reaction, because we did not communicate the details of our proposal. We are absolutely convinced of its expediency and balance.”
The market is skeptical about the words of the newly appointed CEO - shares of Bayer AG are diving, and the prospect of the deal is under attack.
Subscribe and receive analytics by email!
The decline in the value of Bayer AG has not been fundamentally recovered. But a technical correction to $100 per share is possible. We work with long weekly options.
When the stock price rises above 88, we buy call options. We stop trading at level – 92.
When securities fall below 82, we buy put options. We set the cutoff at $80.
