ARTICLE | Company News

Bayer to focus on life sciences, spinning out material science unit

September 19, 2014 2:44 AM UTC

Bayer AG (Xetra:BAYN) said it will focus on its life science businesses and spin out its material sciences division into a separate publicly listed company in the next 12-18 months. The pharma said the major reason for the split is to give Bayer MaterialScience direct access to capital, noting that "this access can no longer be adequately ensured within the Bayer Group due to the substantial investment needs of the Life Science businesses."

Bayer Healthcare and Bayer CropScience -- which make up the pharma's life science businesses -- had 2013 sales of EUR 18.6 billion ($25.6 billion) and EUR 8.4 billion ($11.6 billion), respectively. Drugs marketed by the pharma include ophthalmic drug Eylea aflibercept, to which it has ex-U.S. rights from Regeneron Pharmaceuticals Inc. (NASDAQ:REGN); pulmonary hypertension drug Adempas riociguat, which is partnered with Merck & Co. Inc. (NYSE:MRK); and castration-resistant prostate cancer drug Xofigo radium-223 dichloride, which Bayer gained through its acquisition of Algeta ASA earlier this year. ...