The German firm's new CEO, Marijn Dekkers, said he expected this rise in pharma revenue to be primarily driven by the extended approval of Bayer's stroke drug, Xarelto, in both Europe and the US.
Guenter Forneck, head of media relations for Bayer, told Outsourcing-Pharma.com the extension of Xarelto is one of a number of strategies the company is considering heading into 2011, not all of which focus solely on its pharmaceutical activities.
“A whole bunch of steps are possible to expand the business of our health care activities – not just our pharma business - from internal efforts to external growth,” he said,”This of course [Xarelto] is one element.”
Towards the end of last year Bayer announced plans to cut 2000 jobs by 2012 and has since revealed changes to its management structure, with the number of levels reduced from nine to six in an effort to accelerate “nuts and bolts” decisions and reinvigorate drug development productivity.
The company has also made clear its intention to shift its focus to what Forneck refers to as “fast growing markets in emerging countries,”such as China and India.
Bayer claims to have made a conscious effort to encourage the development of talent in these emerging countries, suggesting that those living and working there are better placed to identify customers' needs.
In a recent interview with the Financial Times, Dekkers called for greater financial rewards for innovation in the face of mounting financial pressure as a result of patent loss and generic rivals.
Dekkers told the FT: “If society wants results it needs to ensure creative effort will be rewarded. Today it's almost as though people are applauding when a drug loses its patent.”
Forneck echoed Dekkers's sentiments, saying: “ To keep R&D on a high level, these spendings need to be rewarded by society; that means pricing that enables companies to invest in R&D.”