) had a very successful 2013 driven by its newly launched
products. The German company is awaiting several regulatory
decisions and pipeline updates in the coming quarters.
Of Bayer's three major segments - HealthCare, Crop Science and
Material Science - HealthCare is the primary revenue generator
for the company. The HealthCare segment has been boosted by the
addition of new products like Xarelto, Eylea and Stivarga over
the last few quarters. The drugs contributed €259 million, €85
million and €51 million, respectively, in the third quarter of
Xarelto, a key revenue generator at the HealthCare segment, is
approved for several indications including stroke prevention in
non-valvular atrial fibrillation, deep vein thrombosis (DVT),
pulmonary embolism (PE) and reducing the risk of recurrent DVT
and PE. Bayer is looking to expand Xarelto's indication further.
Eye-drug Eylea, which was first approved for treating patients
suffering from the neovascular form of age-related macular
degeneration (wet AMD), offers significant commercial potential.
The drug is also approved for the treatment of macular edema
following central retinal vein occlusion (CRVO). Bayer is further
looking to expand the drug's indication.
Stivarga, another key drug at Bayer, also offers significant
commercial potential. The drug is approved for the metastatic
colorectal cancer (mCRC) and gastrointestinal stromal tumors
(GlST) indications in several countries.
Moreover, the approvals of Xofigo (oncology), Adempas tablets
(pulmonary arterial hypertension and chronic thromboembolic
pulmonary hypertension) and Lemtrada (multiple sclerosis) are
also encouraging. These drugs are also expected to contribute
significantly to Bayer's top line in the coming quarters. The new
products are expected to contribute €1.4 billion to segmental
sales in 2013 and the figure is expected to reach €2.5 billion in
2015. In view of the strong product portfolio and attractive
pipeline we remain optimistic on the long-term prospects at
Bayer, a large-cap pharma company, currently carries a Zacks Rank
#4 (Sell) reflecting short-term pressure on the stock. Some
better-ranked stocks in the large-cap pharma sector include
Eli Lilly and Company
). All these stocks hold a Zacks Rank #2 (Buy).
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