Bayer Ag · XETR:BAYN
Bayer — Investor Day (March 2024)
33 slides from Bayer's investor day presentation, Mar 5, 2024
Slide 1: Preparing for Long-Term Growth While Managing LoE Transition
/////////// Health for all, Hunger for none BAYER P R E PA R I N G F O R L O N G - T E R M GROWTH WHILE MANAGING LOE TRANSITION Capital Markets Day 2024 S T E FA N O E L R I C H President Bayer Pharmaceuticals
Slide 2: Cautionary Statements Regarding Forward-Looking Information
. Cautionary Statements Regarding Forward-Looking Information This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the
Slide 3: Bayer Pharma's Strategic Agenda
Bayer Pharma’s Strategic Agenda RENEW GROW PIPELINE LEVERAGE NEW TOPLINE VALUE OPERATING MODEL Drive continued sales Progress late-stage pipeline Diligently allocate momentum and realize resources towards areas blockbuster potential of Nubeqa, Replenish and advance of high impact and value Kerendia
Slide 4: Bayer Pharma Sales Diversified Across Therapeutic Areas and Geographies
Bayer Pharma Sales Diversified Across Therapeutic Areas and Geographies SALES BY THERAPEUTIC AREAS GEOGRAPHIC FOOTPRINT 12% NORTH AMERICA Cardiovascular1 EUROPE, MIDDLE Women’s Health1 33% EAST & AFRICA CHINA 18% ~26% Radiology1 FY2023 ~13% ~40% Oncology €18.1bn Ophthalmology1 11% ~5% ~16% Others 16
Slide 5: Leading Franchises Providing Sales Growth and Resilience, Margin Profile Impacted by LoE Transition
Leading Franchises Providing Sales Growth and Resilience, Margin Profile Impacted by LoE Transition and Strategy Execution Pharmaceuticals Sales & Profitability Key Drivers NET SALES (€bn) / cpa CAGR % Growing sales contributions from recently launched Nubeqa yoy cpa% +5.6 -1.5% +7.4% +1.1% -0.4% an
Slide 6: Launch Assets and Late-Stage Pipeline Expected to Largely Offset LoEs
Launch Assets and Late-Stage Pipeline Expected to Largely Offset LoEs on Stable Base Business illustrative 2023 2024-2026 (cpa) >2027 €18.1bn Elinzanetant, Acoramidis and Asundexian Stroke Elinzanetant, €1.1bn Numerous Acoramidis, Growth: Launch products pipeline assets Asundexian Stroke to potentia
Slide 7: Key Parts of Base Business Benefitting from Strong Market Positions
Despite its Maturity, Key Parts of Our Base Business Are Benefitting from Strong Market Positions and Supportive Trends Bayer Pharma’s Base Business Short- and Mid-term Drivers Net Sales 2023 Radiology: €9.6bn Building on leading positions in contrast media and fluid delivery systems to further expa
Slide 8: Eylea Positioned to Continue Market Leadership in a Growing Market
With Its Unparalleled Clinical Profile, Eylea Positioned to Continue Market Leadership in a Growing Market Global Retinal Disease Landscape Position to Sustain Market Leadership with Eylea 8 mg Retinal market1 Growing ageing population Eylea 8 mg: Potential to establish Standard Rising prevalence th
Slide 9: Xarelto to Face Genericization in the Next Three Years Globally
Xarelto to Face Genericization in the Next Three Years Globally Xarelto’s main patent expirations Historic Genericization Patterns of Small Molecules Countries % of Total Compound Prior cardiovascular LoE benchmark5 Once-daily Xarelto patent patent 100% Sales1 expiry expiry Standard Units 80% China
Slide 10: Nubeqa Set for Continued Growth in Prostate Cancer
Nubeqa Set for Continued Growth in Prostate Cancer Driven by Market Penetration and Label Expansion Short-term Mid- and Long-term 3 2024 2027 2028 ARAMIS ARASENS ARANOTE ARASTEP DaSL-HiCap (ARASEC)4 (ARAMON)4 mHSPC BCR (Neo-)Adjuvant Phase III nmCRPC (nonmetastatic) (nonmetastatic) program1 Drug tre
Slide 11: Kerendia With Potential to Become Foundational Treatment in Kidney Disease or Heart Failure
Kerendia With Potential to Become Foundational Treatment for Broad Groups of Patients with Kidney Disease or Heart Failure Chronic Kidney Disease Heart Failure Phase III program1 Phase III program1 T2D FIDELIO- FIGARO- T1D Non-diabetic FINEARTS-HF CONFIRMATION-HF REDEFINE-HF FINALITY-HF ~ 60m DKD DK
Slide 12: Asundexian is Targeting a High Unmet Need in Secondary Stroke Prevention
Asundexian is Targeting a High Unmet Need in Secondary Stroke Prevention Unmet Need Clinical Rationale and Status of Asundexian Rationale ~1 in 41 Genetic correlation between FXIa deficiency and risk of stroke people have a stroke Asundexian: once-daily FXIa inhibitor with proven clinical in the
Slide 13: Acoramidis with Competitive Clinical Profile to Treat ATTR-CM
Acoramidis1 with Competitive Clinical Profile to Treat ATTR-CM, Complementing Our CVD Franchise in Europe Unmet Need Profile and Deal Rationale of Acoramidis Profile ATTR-CM Oral TTR stabilizer for patients with ATTR-CM Transthyretin amyloidosis cardiomyopathy, a progressive Pivotal Phase III study
Slide 14: Elinzanetant Offers a Differentiated Clinical Profile to Treat Menopause Symptoms
Elinzanetant Offers a Differentiated Clinical Profile to Treat Symptoms Associated With Menopause Differentiated Clinical Profile Phase III Data Elinzanetant Characteristics Focus: Efficacy Focus: Safety OASIS 1 OASIS 2 OASIS 3 VMS: 26 Week VMS: 26 Week VMS: 52 Week NK-1R Reduced sleep disturbance,
Slide 15: Elinzanetant Targeted to Enter Large and Underserved Market in 2025
Elinzanetant Targeted to Enter Large and Underserved Market in 2025 Market Opportunity Bayer Global Leader in Women’s Health4 Unmet need Women who experience1: Hot flashes: ~4 in 5 2/3 ~€3bn >60m 100.000 Sleep disturbance: ~ 1.3m of women not choosing / not net sales patients served OB/Gyn reached w
Slide 16: New Innovation Model to Rapidly Rebuild Pipeline
New Innovation Model to Rapidly Rebuild Pipeline High Level of Focus, Quality and Productivity Focus Quality Capabilities Productivity Rigorous application Biotech-like R&D Shift to value creation, Narrowed research of selection criteria have operating system with product-centric operating focus fro
Slide 17: Focus: Zeroing in on High Unmet Need With Great Value Potential
Focus: Zeroing in on High Unmet Need With Great Value Potential Four Therapeutic Areas in R&D Research focus in four areas Focus Quality Oncology Cardiovascular+1 Capabilities Productivity Neurology & Immunology Rare Diseases 1 Including Precision Cardiovascular, Nephrology & Acute Care 17 /// Bayer
Slide 18: Quality: Pursuing Leading Innovation Across all Focus Areas
Quality: Pursuing Leading Innovation Across all Focus Areas Revised Target-Product-Profile of Our Assets Prioritization of assets based on following selection criteria: Focus Quality Value & Feasibility & Leading Differentiation Risk capabilities Capabilities Productivity Shift to breakthrough innov
Slide 19: Capabilities: Established Toolbox of Leading Modalities
Capabilities: Established Toolbox of Leading Modalities Access to Leading Therapeutic Technology Platforms Through Acquisitions and Collaborations Innovation System Therapeutic Modality Platforms Focus Quality Strong SMOL capabilities further advanced through Internal chemoproteomics platform innova
Slide 20: Productivity: Reaching Higher, Sustainable Level of Output
Productivity: Reaching Higher, Sustainable Level of Output Achieve More and Better Solutions for Patients in a Time- and Cost-efficient Manner Align target-disease link with unmet need and optimal therapeutic modality Early de-risking of assets by strengthening relevant capabilities (e.g. human Focu
Slide 21: Replenishment of Early Pipeline in Full Swing
Replenishment of Early Pipeline in Full Swing; Numerous First-In- Class Pipeline Candidates to Potentially Transition into Phase II/III Rejuvenate mid- / late-stage Feeding from pipeline with several research into phase I high-value assets Advancing higher number of INDs # Pipeline assets1 Actual /
Slide 22: Leveraging DSO to Enhance Productivity and Speed While Managing LoE Transition
Leveraging DSO to Enhance Productivity and Speed While Managing LoE Transition SALES Launch products should largely balance LoE’s near- and mid-term - business to return to growth thereafter Sales MARGIN Drive productivity gains across whole value chain to support margins amid continued growth inves
Slide 23: DSO Will Drive Speed and Productivity Enhancing Innovation and Growth
DSO Will Drive Speed and Productivity Enhancing Innovation and Growth New Operating Model Benefits FROM: Traditional hierarchic, org focus… Organization revolves around customers Customer centricity and products instead of functions Product fit set up Faster decision-making Teams to utilize most app
Slide 24: First Successes of Frontrunner Teams Demonstrate Huge Potential
First Successes of Frontrunner Teams Demonstrate Huge Potential Across the Value Chain Product Supply Inventory Management US Commercial Team Set-up of cross-functional team to redefine collaboration Broke down franchise and functional silos with external suppliers to create customer and product squ
Slide 25: 2024 Guidance and our Mid-Term Ambition Through 2026
2024 Guidance and our Mid-Term Ambition Through 2026 2023 2024e Mid-Term at constant FX1 Support topline resilience during LoE’s of major products: Drive further launch uptake of Nubeqa and Kerendia Net Sales €18.1bn -4% to 0%2 Launch of Eylea 8mg, Elinzanetant and Acoramidis Maximize the full comme
Slide 26: Preparing for Long-term Growth While Managing LoE Transition
Preparing for Long-term Growth While Managing LoE Transition Three strategic priorities: Renew topline – grow pipeline value – leverage new operating model Launch products should largely balance LoE’s near- and mid-term, business expected to return to topline growth thereafter. Our advanced R&D capa
Slide 27: Appendix
APPENDIX 01 27 /// Bayer Capital Markets Day 2024 /// March 5, 2024 // Pharmaceuticals
Slide 28: Pharmaceuticals: R&D Developments (since last update on December 19, 2023)
Pharmaceuticals: R&D Developments (since last update on December 19, 2023) Phase I Phase II Phase III Commercial Initiation of VVD STAT3 Initiation of Anti-a2AP (Acute Approval of Aflibercept 8mg Inhibitor Ischemic Stroke; Pulmonary DME and nAMD in EU and Embolism (SIRIUS)) Japan Discontinuation of
Slide 29: Pharmaceuticals – Pipeline Overview (as of Feb 20, 2024)
Pharmaceuticals – Pipeline Overview1 (as of Feb 20, 2024) Phase I Phase II Phase III HER2/mEGFR Inhibitor (BAY 2927088) Congestive Heart Failure rAAV Gene Therapy (AB-1002) Darolutamide (AR Inhibitor) Congestive Heart Failure (GenePHIT) Prostate Cancer (mHSPC) (ARANOTE) DGKzeta Inhibitor (BAY 296550
Slide 30: Major R&D Milestones Expected in 2024
Major R&D Milestones Expected in 2024 Phase I Phase II Phase III Submission / Approval sGC Activator oral CKD: Darolutamide/ADT mHSPC: PSMA SMOL-TAC: Start Phase I Start Phase IIb Primary compl. phase III (ARANOTE) Bemdaneprocel PD: HER2/mEGFR Inhibitor: SOS1 Inh: Start Phase I Start phase III Start
Slide 31: Numerous First-In-Class Pipeline Candidates to Potentially Transition Into Mid- And Late-Stage
Numerous First-In-Class Pipeline Candidates to Potentially Transition Into Mid- And Late-Stage Soon Selected Assets with Expected Upcoming Phase Transition Potential Launch Program (Indication) Current Phase between 2028-2032 sGC Activator Oral FIC/BIC Phase I (Chronic Kidney Disease) Cardiovascular
Slide 32: Abbreviations (1/2)
Abbreviations (1/2) AE Adverse events EU European Union AI Artificial intelligence EU5 France, Germany, Italy, Spain, United Kingdom AAV Adeno-associated virus Excl. Excluding ATTR-CM Transthyretin amyloidosis cardiomyopathy FDA U.S. Food and drug administration BCR Biochemical recurrence FIC First-
Slide 33: Abbreviations (2/2)
Abbreviations (2/2) m million T1D Type 1diabetes mellitus mg milligram T2D Type 2 diabetes mellitus mHSPC Metastatic hormone sensitive prostate cancer TIA Transient ischemic attack nAMD Neovascular age-related macular degeneration TTR Transthyretin NBRx New-to-brand prescriptions Tx Therapeutics nmC