) recently announced its intention to expand its business in
Russia further. The company expects sales in Russia to grow to
€1.3 billion in 2017 from the 2012 level of €726 million,
representing an increase of 80%. The company expects significant
sales growth in all its subgroups.
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Bayer has already seen growth in the first half of 2013, with
sales in Russia climbing around 12.5% year over year. The company
also plans to increase its employee strength in the country to
around 2,400 in 2017 from 1,570 in 2012. Bayer believes Russia
can be among the top ten markets for the company by 2022 with
sales exceeding €2 billion there.
Bayer's HealthCare segment was the primary revenue generator in
Russia last year, contributing around 67% of the total revenue
from the country. Bayer mentioned in its press release that its
HealthCare segment is currently the fourth largest health care
company in Russia. The segment is expected to benefit from both
prescription-only and non-prescription pharmaceutical products in
Bayer believes that its HealthCare segment will increase around
14% on an average per year in Russia. The segment is expected to
contribute approximately €910 million in 2017 there, which can
make the company the third largest health care company in Russia.
New products like Nexavar (kidney cancer), Stivarga (colorectal
cancer) and riociguat (pulmonary hypertension) are expected to
drive growth in the HealthCare segment in the coming years.
Meanwhile, the company's Material Science segment, one of the
world's largest polymer manufacturers, is expected to contribute
around €230 million in 2017 as opposed to €149 million in 2012,
implying an annual growth rate of around 9%. In 2012, the
Material Science segment accounted for 20% of Bayer's sales in
Bayer's CropScience unit, which is engaged in developing and
marketing chemical crop protection products (insecticides,
herbicides, and fungicides), seeds and integrated plant
biotechnology solutions for agricultural and non-agricultural
uses, contributed around €93 million from Russia in 2012. The
company believes revenues from this segment will be up to around
€150 million by 2017, representing an annual growth rate of 8%.
Bayer also has plans to launch 23 new crop protection products in
the coming years in Russia.
The company further mentioned in its press release that it has
entered into a strategic agreement with Medsintez for
manufacturing and commercializing diagnostic imaging products and
pharmaceuticals. Pharmaceutical products under the deal include
Bayer presently carries a Zacks Rank #3 (Hold). Currently,
Gilead Sciences Inc.
Biogen Idec Inc.
) look well positioned in the pharma space with a Zacks Rank #1