Pharma: Bayer raises annual targets: CEO sees “turning point”

Dusseldorf. Bayer AG has again raised its annual forecast after a surprisingly strong third quarter. The pharmaceutical division in particular performed significantly better than management and analysts forecast. CEO Bill Anderson sees a “turning point” in development reached.

Bayer increased its adjusted operating profit (Ebitda) by 6.9 percent to 1.62 billion euros between July and September, as the Leverkusen-based company announced on Tuesday. Analysts on average had expected a decline to 1.435 billion euros. Group sales climbed by a good four percent to over ten billion euros within a year.

The board raised the annual targets. Bayer now expects an adjusted operating profit of 9.8 to 10.3 billion euros for the full year, after previously forecasting 9.6 to 10.1 billion euros. The group was also more optimistic about debt reduction and free cash flow.

Investors appreciated the numbers: Bayer shares rose by more than five percent to more than 52 euros in morning trading. The price had already climbed to values ​​of well over 50 euros in the past few weeks. The reason was a series of positive news from the medicine business and the foreseeable containment of the legal risks from glyphosate lawsuits in the USA.