Bayer CEO warns of tough 2025 as turnaround plan beds in

Investors looking for a quick turnaround in the fortunes of Bayer are likely to be disappointed by chief executive Bill Anderson's assessment of the next couple of years as he delivers the group's financial results today.

Anderson is expecting 2025 to be a pivotal year for his turnaround plan – which revolves around the removal of management layers that will see approximately half of the company's managers lose their jobs – but that a return to growth won't happen until next year.

For the pharma business, which is dealing with patent losses on key products, a recovery won't be seen until 2027.

Looking at the top-line group finances for 2024, sales were flat at €46.6 billion ($49.8 billion), while the group posted a net loss of €2.55 billion and earnings per share fell 21% to €5.05, below its €5.40 forecast. Anderson said 2025 sales will be "roughly in line" with the 2024 figure, with earnings coming in lower.

Pharma fared a little better, with revenues up 3.3% to €18.13 billion, but are likely to be hit hard by the impact of further generic competition to big-selling anticoagulant Xarelto (rivaroxaban) this year. Just this week, the first low-cost rivals were approved in the US (see our story on that development here), where Xarelto is sold by co-development partner Johnson & Johnson.

"Speaking frankly, we see 2025 as the toughest year in our turnaround," said Anderson. However, he added that the company expects to also see considerable progress in the revamp programme.

Anderson pointed to the advancement of more than 20 clinical-stage R&D programmes, the upcoming launches of transthyretin amyloidosis cardiomyopathy therapy Beyonttra (acoramidis) and elinzanetant for menopause symptoms, backed by strong growth for key products Nubeqa (darolutamide) for prostate cancer and chronic kidney disease therapy Kerendia (finerenone).

The next 12 months are viewed as crucial for Bayer and Anderson, as investors look for a recovery in the group's share price – currently trading at €24.95, less than half its value when the CEO took over in the middle of 2023 – and progress resolving some significant challenges facing the business, including ongoing lawsuits claiming that Bayer's pesticide ingredient glyphosate can cause cancer.

"You're going to see us with our sleeves rolled up, focused on taking the right actions to set up our customers, our company, and our owners for a prosperous future," asserted Anderson.

Shareholders seemed fairly happy with today's update, and the stock rose more than 6% in morning trading.

Bayer also updated on its staffing reduction programme, noting that its cuts have led to the elimination of "approximately seven thousand, predominantly managerial, jobs." That is an increase on around 5,500 reported in its third-quarter update last year.