Bayer Healthcare chief views growth drivers for pharma business

German drug major Bayer (BAY: DE), which reported 2010 results on Monday (The Pharma Letter March 1), said at its press conference in Leverkusen that it Bayer Healthcare unit expects to see sales growth in the low-to-mid single-digit percents, after adjusting for currency and portfolio effects. But it forecasts stronger revenue growth in 2012, with the roll out of new drugs or for expanded indications on existing products.

Moreover, the group’s management board chairman, Marijn Dekkers, stressed that new drugs in the pipeline will see the Pharma business driving growth of the Healthcare sub unit, while emphasizing that health care reforms - which have already taken a 160 million-euro ($220 million) toll on 2010 results - are likely to continue to impact operations in both the USA and Europe, perhaps to the tune of 200-300 million euros.

Applications were submitted both to the European Medicines Agency and to the US Food and Drug Administration for the anticoagulant Xarelto (direct factor Xa inhibitor) in early 2011. This drug is already marketed for the prevention of venous thromboembolism following hip or knee replacement, but the company is seeking wider, chronic, indications for stroke prevention and the treatment and secondary prevention of deep vein thrombosis. As previously reported, Bayer expects peak sales potential of more than 2 billion euros ($2.75 billion) for Xarelto, which is set to become one of Bayer's main growth drivers if new indications are approved worldwide. The German firm has also forecast that the market sector overall could be worth $12 million to $15 million.