Science For A Better Life

Transcription

1 Science For A Better Life Innovation, performance and commitments Defining our priorities Dr. Marijn Dekkers UBS Global Life Science Conference September 22, 2010

2 Science For A Better Life This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer s public reports which are available on the Bayer website at The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. Disclaimer

3 Bayer A Science Based Business Model Science For A Better Life Culture & Capabilities 12,400 people in R&D 3.1bn R&D budget in 2010 Global footprint Network with leading institutions Innovation Transformational latestage pharma pipeline Agchem pipeline with combined peak sales potential of 1.25bn New applications at MaterialScience Value Performance Customers Shareholders Employees UBS Global Life Science Conference Dr. Marijn Dekkers Page 1 Bayer A Leader in Its Markets 16.0bn HealthCare Pharmaceuticals 10.5bn leading positions in key categories 25% Consumer Health 5.5bn OTC pharmaceuticals, blood glucose meters and veterinary medicines, global #2-4 53% 22% 6.5bn CropScience Agrochemicals and seeds & traits, global #2 in agrochemicals 7.5bn MaterialScience Polyurethanes and polycarbonates, global #1 Sales 2009: 31.2bn Break-down excluding reconciliation UBS Global Life Science Conference Dr. Marijn Dekkers Page 2 1

4 World-Class Business Portfolio With Improving Mid-Term Outlook Maximize value of pipeline HealthCare At the verge of a business transforming new product cycle Significant investment requirements to rejuvenate product portfolio Overweight in emerging markets World-class Consumer Health portfolio Translating R&D more effectively into sales CropScience Well-proven track record of R&D efficiency: launched 23 new AIs between 2000/2009 Commercial effectiveness & efficiency initiatives will be evaluated Fast growing BioScience (seeds & traits) business Recover margins MaterialScience A leader in its markets Unique global production network & technology base Key strength in applications research UBS Global Life Science Conference Dr. Marijn Dekkers Page 3 Defining Our Priorities 1. Maximize value of pharma pipeline 2. Translate R&D more effectively into sales at CropScience Focus areas Recover margins at MaterialScience Build a new leadership team 5. Invest in emerging markets growth 6. Achieve financial targets UBS Global Life Science Conference Dr. Marijn Dekkers Page 4 2

5 Maximize value of pharma pipeline UBS Global Life Science Conference Dr. Marijn Dekkers Page 5 Key Pharma Pipeline Assets Potentially Transformational What it does Status Cardiology Xarelto Riociguat inhibits blood clot formation lowers blood pressure in the lung 1st indication launched/ filed; phase III phase III Oncology Nexavar Regorafenib Alpharadin inhibits enzymes important for tumor growth inhibits enzymes important for tumor growth targeted treatment of bone metastases in prostate cancer launched, additional indications in phase II/III phase III phase III Eye Diseases VEGF Trap-Eye inhibits formation of new blood vessels phase III Imaging Florbetaben detects amyloid-betaplaques (Alzheimer s disease) phase III UBS Global Life Science Conference Dr. Marijn Dekkers Page 6 3

6 Key Results of the EINSTEIN-DVT Study In patients who had objectively confirmed DVT without symptomatic PE oral rivaroxaban was studied vs. standard therapy* and showed: Non-inferiority for efficacy; primary efficacy outcome: symptomatic recurrent VTE (composite of recurrent DVT, non-fatal PE or fatal PE) Similar findings for the principal safety outcome (composite of major bleeding and clinically relevant non-major bleeding) with numerically lower major bleeds Significant improvement for secondary outcome net clinical benefit: primary efficacy outcome + major bleeding A confirmed positive benefit-risk profile No signal for impaired liver safety No increase in major adverse cardiovascular events UBS Global Life Science Conference Dr. Marijn Dekkers Page 7 *Standard therapy: low-molecular weight heparin (LMWH) followed by vitamin K antagonist (VKA) DVT: deep vein thrombosis PE: pulmonary embolism In All Phase III Studies Reported Xarelto Demonstrated an Excellent Clinical Profile Indication Study Comparator Clinical Trial Results # VTE prevention after orthopedic surgery 12,729 patients Enoxaparin Superior efficacy: 52% relative risk reduction* Rates of major bleeding low. No statistically significant difference No signal for liver toxicity or cardiovascular rebound Extended secondary prevention of VTE 1,197 patients Placebo Superior efficacy: 82% reduction of recurrent VTE Low incidence of major bleeding no statistically significant difference No signal for liver toxicity no increase in major adverse CV events DVT Treatment 3,449 patients Enoxaparin followed by VKA Non-inferior efficacy Composite of major and clinically relevant non major bleeding similar Numerically lower major bleedings observed for rivaroxaban Significantly improved net clinical benefit ** No signal for impaired liver safety, no increase in major adverse CV events DVT: Deep vein thrombosis PE: Pulmonary embolism VTE: Venous thrombo-embolism VKA: Vitamin K antagonist CV: Cardiovascular #) Selection, for full data see publications: RECORD data published in NEJM and Lancet, EINSTEIN-Ext. presented at ASH 2009, EINSTEIN-DVT presented at ESC 2010 *) Symptomatic VTE + all-cause mortality in pooled analysis of RECORD 1-4 **) Secondary outcome defined as composite of primary efficacy endpoint plus major bleeding UBS Global Life Science Conference Dr. Marijn Dekkers Page 8 4

7 During The Next 2 Years The Clinical And Commercial Profile of Our Pipeline Will Emerge 2010 Expected or upcoming major news flow: Completion of ROCKET AF phase III trial in stroke prevention in A fib patients VEGF Trap-Eye: First data from the VIEW phase III program in wet AMD 2H 2010e Q4 2010e and beyond First filings in DVT treatment and in stroke prevention in A fib patients Q4 2010e MAGELLAN trial in VTE prevention in medically ill patients Data expected early 2011 EINSTEIN-PE Completion summer 2011e ATLAS TIMI 51 Filing target 2011/2012 Phase III in thyroid cancer / non-small cell lung cancer (MISSION) Completion 2011e VEGF Trap-Eye: Phase III program in CRVO Data expected 1H 2011 Riociguat: Phase III in PAH and CTEPH Completion 2011e Florbetaben: Phase III program: diagnosis of beta-amyloid in Alzheimer patients Filing 2011/2012e Alpharadin: Phase III, hormone resistant prostate cancer Data expected 2H 2012 UBS Global Life Science Conference Dr. Marijn Dekkers Page 9 A`fib: atrial fibrillation Invest in emerging markets growth UBS Global Life Science Conference Dr. Marijn Dekkers Page 10 5

8 Performance of Top 15 Large Pharma Companies in the Pharmerging Markets Bayer shows: Best ability to adapt to local markets 35% 30% Superior local execution capabilities A stable senior leadership team Continuous investments in mature products (Glucobay or Adalat) % CAGR % 20% 15% 10% 5% AZ J&J LILLY MERCK WYETH ABBOTT ROCHE BMS PFIZER GSK B-I NOVARTIS S-P S-A BAYER 0% 0% 20082% 4% % 8% % 12% 14% 20116% 18% % 22% % 2009 Revenue (Bubble size shows Pharmerging market sales)* Source : IMS Health Incorporates Pharmerging shake-up 2010 UBS Global Life Science Conference Dr. Marijn Dekkers Page 11 Bayer is Well Positioned And Captures Significant Growth in Emerging Economies In million, % yoy Fx adjusted Q2 10 HealthCare Sales by Region Emerging Economies USA -10% 25% 30% Emerging Economies¹ +9% +12% +23% % 14% -8% % 210 Western Europe -1% Other Territories² +11% HealthCare 4,304m; +1% Emerging Asia³ Latin America Eastern Europe Africa & Middle East UBS Global Life Science Conference Dr. Marijn Dekkers Page 12 ¹ Emerging economies include: Latin America, Asia w/o Japan, Australia, New Zealand, Africa and Middle East incl. Turkey, Eastern Europe ² Other Territories = Japan, Australia, New Zealand, Canada ³ Emerging Asia = Asia minus Japan, Australia, New Zealand 6

9 CropScience: Translate R&D more effectively into sales UBS Global Life Science Conference Dr. Marijn Dekkers Page 13 Proven Track-Record of Innovation 23 new active ingredients launched Sales in million Herbicides Fungicides Insecticides Seed Treatment Flubendiamide Tembotrione Fluopicolide Ethiprole Spiromesifen Prothioconazole Fluoxastrobin Spirodiclofen Clothianidin Mesosulfuron Foramsulfuron Methoxyfenozide Fentrazamide Propoxycarbazone Fenamidone Thiacloprid Iodosulfuron Trifloxystrobin Iprovalicarb Thiencarbazonemethyl Cyprosulfamide Pyrasulfotole Spirotetramat UBS Global Life Science Conference Dr. Marijn Dekkers Page 14 7

10 New Products Generated Sales of Approx. 2bn in 2009 Sales of new active ingredients (A.I.s) in million New active ingredients in 2009 New active ingredients make for 33% of agrochemical sales +31 % +10 % 1,808 1,994 Novel Herbicide products grew above average (+15%) +33 % 1, % 885 1,039 Insecticides Seed Treatment 12% Fungicides 14% 2009: 1,994m 43% Agchem sales: Crop Protection and Environmental Science, excl. BioScience * Crop Protection only: 33.5 % in FY'08, 36.4% in FY'09 Herbicides 31% UBS Global Life Science Conference Dr. Marijn Dekkers Page 15 Six New Substances until 2012: Sales Potential of more than 1bn New active ingredient Major brand name Use Planned launch Isotianil Routine Fungicide Launched in Japan & Korea in 2010 Fluopyram Luna Fungicide 2010/2011 Bixafen Aviator Xpro TM Fungicide 2011 Bacillus firmus* Votivo Seed treatment US availablity: 2011 growing season Indaziflam Advanced TM Specticle TM Herbicide First registrations recently granted in UK Penflufen Emesto TM Emerion TM Seed treatment 2012 onwards * Biological control agent; ** Subject to regulatory approval UBS Global Life Science Conference Dr. Marijn Dekkers Page 16 8

11 Grow BioScience Sales to 1.4bn by 2018 Planned sales development in million CAGR 12% >1,000 ~1,400 Key growth drivers Fast growing established business in cotton, canola, rice and vegetables Introduction of new varieties Regional expansion CAGR 11% >500 Exploit traits potential through licensing agreements Extension of our crop-portfolio Significant R&D investment (~ 130m in 2009; 200+m in 2012E) 2002* E 2015 E 2018 E *2002 sales pro-forma Bayer + Aventis CropScience R&D capacities strengthened through acquisition of Athenix (2009) UBS Global Life Science Conference Dr. Marijn Dekkers Page 17 Recover margins at MaterialScience UBS Global Life Science Conference Dr. Marijn Dekkers Page 18 9

12 Pronounced Volume Recovery Drove Q2 MaterialScience Sales Above Pre-Crisis Levels pre-crisis During 2009 lower selling prices reduced sales by 1.2bn 2.7 Sales in billion % yoy, Fx adj Volumes % yoy UBS Global Life Science Conference Dr. Marijn Dekkers Page Q3 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q Prices % yoy uebitda margin Achieve financial targets UBS Global Life Science Conference Dr. Marijn Dekkers Page 20 10

13 2nd Quarter 2010 Further Growth of Sales And Earnings Sales portfolio & currency adj. in million EBITDA pre-special items in million Core EPS in Net Cash Flow in million 9,179 8,009 1,765 1,917 1,399 1, Q2 09 Q2 10 Q2 09 Q2 10 Q2 09 Q2 10 Q2 09 Q % +9% +10% +10% UBS Global Life Science Conference Dr. Marijn Dekkers Page Outlook Projects Strong Recovery Over Previous Year Sales Fx and portfolio adjusted E Sales 31.2bn -6% >5% uebitda 6.5bn -7% > 7bn Core EPS % >15% UBS Global Life Science Conference Dr. Marijn Dekkers Page 22 Outlook depends on planning assumptions as detailed in the 2009 annual report 11

14 Innovation, performance and commitments Defining our priorities Dr. Marijn Dekkers UBS Global Life Science Conference September 22, 2010 UBS Global Life Science Conference Dr. Marijn Dekkers Page 23 Investor Relations Contacts Dr. Alexander Rosar Head of Investor Relations Phone: Dr. Jürgen Beunink Phone: Peter Dahlhoff Phone: Judith Nestmann Phone: Dr. Olaf Weber Phone: UBS Global Life Science Conference Dr. Marijn Dekkers Page 24 12