In a speech this week, Bayer CEO Bill Anderson addressed the short-term future of the multi-sector global company. Anderson says, “We are a high-impact, mission-driven, life-science company with three strong businesses, but we have four challenges that urgently must be addressed.”
He was referring to the Pharmaceuticals pipeline, U.S. litigation, the company’s high debt levels and bureaucracy that blocks progress. The company will focus on these areas for the next few years and implement its new operating model, Dynamic Shared Ownership. Bayer says the effort will help its Crop Science division strengthen its position with ten blockbusters reaching the market over the next decade. Despite gains overseas, Bayer’s agricultural business saw overall sales fall by 3.7 percent last year. The decline was led by significantly lower prices for glyphosate-based products, resulting in a 26.0 percent downturn in sales of Herbicides.
The rest of the portfolio saw a positive price development overall, driven by innovative products and higher commodity prices. Regarding a potential break-up of the company, Anderson says, “Our answer is ‘not now’ – and this shouldn’t be misunderstood as ‘never.'”
