Bayer Ag · XETR:BAYN
Bayer — Investor Day (December 2018)
33 slides from Bayer's investor day presentation, Dec 5, 2018
Slide 1: Driving Performance and Delivering New Growth Opportunities
Driving Performance and Delivering New Growth Opportunities /////////// Capital Markets Day London, December 5, 2018 Stefan Oelrich Head of Pharmaceuticals Joerg Moeller Head of Pharmaceuticals R&D
Slide 2: Disclaimer
Disclaimer Cautionary Statements Regarding Forward-Looking Information This presentation contains forward-looking statements. A forward-looking statement is any statement that does not relate to historical facts and events, but rather reflects Bayer’s current beliefs, expectations and assumptions re
Slide 3: The Pharma Market Will Remain Attractive
The Pharma Market Will Remain Attractive Major market dynamics Market Size 2017 Aging population Accelerating pace of innovation €870bn Declining R&D productivity Technological disruption by breakthrough science 4 - 5% Digitalization across the value chain Pressure on price for value continues to in
Slide 4: Innovative Medicines in Areas of High Unmet Medical Need
Innovative Medicines in Areas of High Unmet Medical Need Global leadership in Therapeutic area focus Emerging markets exposure important therapeutic areas Other Emerging No. 1 in Retinal Diseases Markets Hematology Cardio- vascular 32% No. 1 in Women´s Health Sales 2017 Sales 2017 Ophthal- €16.8bn E
Slide 5: Continued Sales Growth and Margin Expansion
Continued Sales Growth and Margin Expansion €bn 4.3% Sales growth above industry level 8.7% 9.1% 16.8 16.4 15.3 Successfully launched and commercialized innovative 9.8% products, with Xarelto and Eylea becoming blockbuster 13.5 brands 12.7 5.7 5.3 Disciplined resource allocation 4.6 3.9 4.1 2017 EBI
Slide 6: Key Drivers for Growth and Margin Expansion
Key Drivers for Growth and Margin Expansion Focus on key brands Focus on key markets Prudent cost management Sales 2017 2013 - 2017 USA €3.7bn COGS -400 bps2 PR China €2.0bn M&S -700 bps2 Japan €2.0bn R&D +230 bps2 Germany €1.5bn France €0.6bn Brazil €0.4bn ~70% of sales growth ~50% of sales growth
Slide 7: Focused Leadership Strategy to Deliver Mid-term Targets and to Ensure Long-term Success
Focused Leadership Strategy to Deliver Mid-term Targets and to Ensure Long-term Success 2022 Targets for Pharma Sales CAGR 4 - 5% EBITDA-margin >35% (Basis 2018e of ~€16.8bn) Focused Leadership Relentless Focus Innovation Excellence in Execution Stringent focus on key brands Supplement organic pipel
Slide 8: Xarelto – Continued Growth of a Leading Anticoagulant
Relentless Focus Xarelto – Continued Growth of a Leading Anticoagulant Most broadly indicated anticoagulant for use in venous and arterial thromboembolic conditions Sales in €bn 3.3 A leading pharma brand with global sales of €5.0bn in 2.9 2017 incl. sales at Johnson & Johnson New CAD/PAD indication
Slide 9: Xarelto Demonstrates Significant Therapeutic Benefits in CAD/PAD
Relentless Focus Xarelto Demonstrates Significant Therapeutic Benefits in CAD/PAD Potential for Changing the Current Standard of Care Combination of Xarelto 2.5 mg bid + aspirin 100 mg od Efficacy (RRR) compared to aspirin 100 mg od alone (COMPASS) - 24% MACE Significant reduction in the relative ri
Slide 10: Eylea – A Leader in Retinal Diseases
Relentless Focus Eylea – A Leader in Retinal Diseases A leader in retinal diseases with global brand sales of €5.2bn in 2017 incl. sales at Regeneron1 Sales in €bn 1.9 Approved for the treatment of 5 retinal diseases: wAMD, DME, BRVO, CRVO, mCNV 1.6 Treat and extend dosing regimen with injection int
Slide 11: Larotrectinib Provides Novel Tumor-Agnostic Precision Medicine Cancer Therapy
Relentless Focus Larotrectinib Provides Novel Tumor-Agnostic Precision Medicine Cancer Therapy Precision medicine, identifying the right patient Larotrectinib (Vitrakvi) is an oral, small molecule, highly for the right treatment selective inhibitor of tropomyosin receptor kinases (TRKs) Cancer NTRK
Slide 12: Larotrectinib Demonstrates Impressive Anti-Tumor Activity
Relentless Focus Larotrectinib Demonstrates Impressive Anti-Tumor Activity Activity in a Wide Range of Tumors Associated with NTRK Gene Fusions Maximum change in tumor size according to tumor type (RECIST) Objective response rate Assessment (N=109) Objective response rate 81% (95% CI) (72-88%) Best
Slide 13: China is a Growth Engine for Pharma
Relentless Focus China is a Growth Engine for Pharma Sales in PR China in €bn Ranked among the top 5 multi-national pharma companies in China ~3.0 ~13% CAGR cpa Targeting sales of ~€3bn in PR China by 2022 Portfolio of established and innovative drugs matches 2.0 China´s needs 1.8 Strong growth of k
Slide 14: Successful Track Record in Innovation
Innovation Successful Track Record in Innovation Growth Above industry average output in terms of product sales from pipeline assets driver launched over last 10 years 100% success rate for phase III development of new molecular entities since 2008 Pipeline quality ~50 projects in clinical developme
Slide 15: Addressing High Unmet Medical Need and Attractive Markets
Innovation Addressing High Unmet Medical Need and Attractive Markets Cardiovascular Diseases are Still the “Biggest Killers”, While Oncology is the Fastest Growing Market Main causes of death (2016) Top 5 therapeutic categories 250 Global market size ($bn) Ischemic heart disease CAGR 2017-2021e Stro
Slide 16: Late-stage Pipeline with Progress in Oncology
Innovation Late-stage Pipeline with Progress in Oncology Darolutamide met Primary Endpoint in Phase III-trial and FDA-approval of Larotrectinib Larotrectinib Darolutamide Copanlisib Finerenone Vericiguat Indication TRK-fusion Prostate Cancer Lymphoma Diabetic Kidney Chronic Heart Cancer Disease Fail
Slide 17: Darolutamide Significantly Extended Metastasis-free Survival in Men with Castration Resistant Prostate Cancer
Innovation Darolutamide Significantly Extended Metastasis-free Survival in Men with Castration Resistant Prostate Cancer Darolutamide is a novel non-steroidal androgen Expanding our position in prostate cancer receptor antagonist in development for the treatment of prostate cancer Disease progressio
Slide 18: Expected Launches of Key Pipeline Assets
Innovation Expected Launches of Key Pipeline Assets 2018 2019 2020 2021 2022 2023+ Xarelto Ped. VTE treatment VOYAGER PAD CAD/PAD (EINSTEIN JUNIOR) Cardio- Finerenone Diabetic kidney disease vascular Vericiguat Heart failure label expansion (HFpEF) Heart failure (HFrEF) Larotrectinib LOXO-195 TRK-fu
Slide 19: Bayer Has Unique Access to Targeted Thorium Conjugates, a New Approach for Cancer Treatments
Innovation Bayer Has Unique Access to Targeted Thorium Conjugates, a New Approach for Cancer Treatments -radiation is highly energetic and may induce DNA damage leading to cell death Other than -radiation, -radiation is active over a very short distance only which may increase tissue specifity Ta
Slide 20: Targeted Thorium Conjugate Platform May Have Potential in Several Oncology Settings
Innovation Targeted Thorium Conjugate Platform May Have Potential in Several Oncology Settings Project Indication Status Comment CD-22-TTC CD-22+ NHL Phase I Significant need for new therapeutic options for the treatment of r/r NHL (DLBCL, FL) Mesothelin-TTC Solid tumors expressing Phase I Mesotheli
Slide 21: Re-alignment of R&D-activities to Increase Sustainable R&D Productivity
Innovation Re-alignment of R&D-activities to Increase Sustainable R&D Productivity From To Broad set of indications in Oncology, Cardiovascular Focus on select areas with high unmet medical need in Diseases and Gynecological Therapies Oncology, Cardiovascular Diseases and Gynecological Therapies Foc
Slide 22: External Innovation and Partnering are Essential Components of Success at Pharma
Innovation External Innovation and Partnering are Essential Components of Success at Pharma Joint Labs Research Collaborations Joint Labs: e.g. German Cancer Research Multiple projects: e.g., Evotec, Tsinghua University, Center (DKFZ), Broad Institute Peking University, Vanderbilt University, MD And
Slide 23: First Wave of Breakthrough Investments by LEAPS
Innovation First Wave of Breakthrough Investments by LEAPS Biotech with Bayer and CRISPR Therapeutics as major investors Biotech with Bayer and Versant Ventures as major investors $300 million over 5-6 years, associated with $70 million equity of Bayer $225 million over 4-5 years in CRISPR Therapeut
Slide 24: Further Growth in Sales and Profitability
Execution Further Growth in Sales and Profitability Indicative Target Pharma 2018e Guidance 2019 2022 Sales/Sales growth ~€16.8bn ~4% CAGR 4-5% EBITDA/EBITDA margin ~€5.6bn ~34% >35% 2022 targets at constant currencies, not including portfolio measures EBITDA / EBITDA margin based on EBITDA before s
Slide 25: We Are Confident for Pharma Also Beyond 2022
We Are Confident for Pharma Also Beyond 2022 Until 2022 2022+ Delivering on mid-term growth Realizing the full value of Relentless and margin aspirations the portfolio until LoEs Focus China to become our largest Maximizing the potential of pharma market the existing portfolio to ensure short- to mi
Slide 26: Key Takeaways
Key Takeaways Driving Performance and Delivering New Growth Opportunities 1 Mid-term targets project further growth and margin improvement 2 China is a growth engine for Pharma 3 Late-stage pipeline with progress in Oncology 4 Re-alignment of R&D activities to increase sustainable R&D productivity K
Slide 27: Experienced Pharmaceuticals Executive Leadership Team
Experienced Pharmaceuticals Executive Leadership Team Stefan Oelrich President, Pharmaceuticals Reinhard Franzen Sebastian Guth Wei Jiang Heike Prinz Robert LaCaze Stefan Oelrich1 Commercial Operations Commercial Operations Commercial Operations Commercial Operations Japan SBU Oncology Strategic Mar
Slide 28: Pharmaceuticals Appendix
Capital Markets Day Pharmaceuticals /////////// Appendix
Slide 29: Our Pipeline Contains ~50 Projects in Clinical Development
Our Pipeline Contains ~50 Projects in Clinical Development Phase I (26) Phase II (13) Phase III (11) Cancer / TRK Inhibitor (LOXO-195) Cancer / Radium-223 (-Emitter) Prostate Cancer (nmCRPC) / Darolutamide (AR Antagonist) Cancer / Rogaratinib (pan-FGFR Inhibitor) Urothelial Cancer / Rogaratinib (pa
Slide 30: Finerenone May Reduce the Risk of CV-mortality and the Progression of Kidney Disease
Finerenone May Reduce the Risk of CV-mortality and the Progression of Kidney Disease in Patients with Diabetic Kidney Disease Finerenone is a novel non-steroidal MRA that has Key phase II data (ARTS-DN1) greater receptor selectivity and better receptor affinity 1.2 UACR ratio than existing MRAs (e.g
Slide 31: Vericiguat is a Potentially New Treatment Option on Top of Standard of Care for Heart Failure
Vericiguat is a Potentially New Treatment Option on Top of Standard of Care for Patients with Heart Failure First-in-class, direct sGC stimulator addressing the Key phase II data (SOCRATES-REDUCED1) NO-sGC-cGMP pathway, a relevant mechanism in PLA 1.25 mg 2.5 mg 2.5-5 mg 2.5-10 mg Pooled 0 heart fai
Slide 32: Copanlisib is a Differentiated PI3K-inhibitor for the Treatment of Lymphoma
Copanlisib is a Differentiated PI3K-inhibitor for the Treatment of Lymphoma Phosphatidylinositol-3-kinase (PI3K) inhibitor blocking Key phase II data (CHRONOS-1)1 cellular signal transduction processes crucial for cancer progression Overall response rate in patients with follicular B-cell non-Hodgki
Slide 33: Driving Performance and Delivering New Growth Opportunities
Driving Performance and Delivering New Growth Opportunities /////////// Capital Markets Day London, December 5, 2018 Stefan Oelrich Head of Pharmaceuticals Joerg Moeller Head of Pharmaceuticals R&D