Bayer CEO warns of tough 2025 amid restructuring

GERMANY – Bayer CEO Bill Anderson has cautioned investors that 2025 will be a challenging year as the company pushes forward with a major turnaround plan.

While growth is expected in 2026, the pharma division, facing key patent losses, may not recover until 2027.

Bayer’s 2024 financial results show flat sales at €46.6 billion (US $49.8 billion). The company reported a net loss of €2.55 billion, with earnings per share dropping 21% to €5.05, below the €5.40 forecast. Anderson expects 2025 sales to be similar to 2024 but with lower earnings.

The pharma division saw a 3.3% revenue increase to €18.13 billion, but generic competition is threatening future earnings.

This includes the impact of low-cost alternatives to Xarelto (rivaroxaban), which were recently approved in the U.S..

“Speaking frankly, we see 2025 as the toughest year in our turnaround,” Anderson admitted. However, he remained optimistic, emphasizing that significant progress in cost-cutting and restructuring is expected.

Restructuring and job cuts

Anderson’s turnaround strategy focuses on removing management layers, with half of Bayer’s managers losing their jobs.

The staff reduction program has already eliminated approximately 7,000 positions, up from 5,500 reported in 2023.

Pipeline and new launches

Bayer is betting on its research pipeline to drive future growth. The company is advancing over 20 clinical-stage R&D programs, with upcoming launches including:

• Beyonttra (acoramidis) for transthyretin amyloidosis cardiomyopathy
• Elinzanetant for menopause symptoms
• Growth in Nubeqa (darolutamide) for prostate cancer and Kerendia (finerenone) for chronic kidney disease

Despite Bayer’s struggles, investors responded positively to Anderson’s update. The company’s stock rose over 6% in morning trading.

However, Bayer’s current share price of €24.95 remains less than half of what it was when Anderson took over in mid-2023.

Beyond financial and structural hurdles, Bayer is also battling legal issues. The company faces lawsuits over glyphosate, a pesticide ingredient alleged to cause cancer.

Anderson stressed Bayer’s commitment to resolving these issues while focusing on long-term success.

“You’re going to see us with our sleeves rolled up, focused on taking the right actions to set up our customers, our company, and our owners for a prosperous future,” Anderson assured investors.