Bayer in Japan Achieves Dynamic Increase in Sales under Its Growth Strategy
- Sales rising by 14.4% to 268,806 million yen in 2013
- Year-on-year growth attained in all subgroups
- HealthCare and MaterialScience post double-digit growth
- Seeking to raise sales to 330 billion yen by 2017
Tokyo, April 7, 2014- Bayer Holding Ltd. announced today that Bayer's sales in Japan for FY2013 totaled 268,806 million yen, rising 14.4% over the preceding year. "This great achievement is the product of our steady deployment of the Growth Strategy we rolled out in 2011," commented Hans-Dieter Hausner, Senior Bayer Representative for Japan.
Bayer HealthCare posted sales worth 195,990 million yen, up 15.7% year on year. This double-digit growth was largely driven by a strong takeoff in new product sales and the solid performance of growth assets.
Bayer CropScience, carrying on efforts to actively launch new products on the market, expanded its sales by 1.9% to 32,703 million yen while also expanding its market share for the second year in a row.
Bayer MaterialScience recorded a dynamic increase of 20.1% in its sales, which rose to 40,113 million yen thanks to the construction industry's booming demand for insulation and other building materials, and to the raw material business that the subgroup newly launched. The staff complement at Bayer in Japan at the end of December 2013 was 3,360 employees.
Subgroup Performance and Topics for 2013
Guided since March 2013 by its new President, Dr. Carsten Brunn, Bayer HealthCare achieved a substantial increase in sales of 15.7% through efforts to expand sales of both innovative new products and growth assets.
Sales surged upward for both the oral anticoagulant Xarelto, which was freed from its two-week prescription period limit last May, and the ophthalmological VEGF inhibitor Eylea. The cancer treatment Stivarga grew steadily following its launch in May 2013, and other growth assets also continued robust growth.
Seeking to rejuvenate its product portfolio, Bayer HealthCare succeeded in increasing the sales weight of its products without generic exposure to 63%, already surpassing the goal of 60% that had been set for this year. Bayer HealthCare has now 42 Phase II and III clinical trials lined up in Japan this year. The subgroup also plans to establish an open innovation center as a new organization in 2014 and will continue striving to bring a "Better Life" to patients by providing them with innovative products.
Bayer CropScience, which welcomed Dr. Harald Printz as its new President in August 2013, was able to grow its sales by 1.9%, despite challenging lower insecticide sales for overseas subsidiaries into Japan.
As part of its growth strategy, the subgroup launched a number of new products during the year, including 4 products from the Crop Protection division-the rice and vegetable insecticide GURDNER Flowable, the rice fungicide ROUTINE Flowable, the fungicide JUSTFIT Flowable, and the insecticide/miticide MOVENTO Flowable-as well as the Environmental Science division's plant growth regulator Proxy and lawn herbicide Specticle Flowable.
Bayer CropScience will keep providing highly innovative products and additional valued services to the market in 2014 to provide a "Better Life" to growers and to contribute to the entire agricultural industry.
Although Bayer MaterialScience also faced a rapidly changing market environment in 2013, it attained a 20.1% boost in sales year on year, owing to the construction industry's stronger demand for insulation and other materials, and the solid performance of the new raw material business launched recently.
As part of its drive to build up new businesses, Bayer MaterialScience actively pursued marketing efforts targeted at robotics-a market that promises to see dramatic growth globally in the years ahead-and at applications for Baycusan, a polyurethane raw material for cosmetics. The subgroup also focused on developing solutions that contribute to weight reduction and energy management for the automotive industry.
Safety remains a top priority for the subgroup, as attested by the high level of safety at Sumika Bayer Urethane's Niihama Plant, which set a record of 17 consecutive years of incident-free operations last June. The MaterialScience subgroup as a whole-including DIC Bayer Polymer's Sakai Plant-has maintained a high standard of safety in its operations.
This May, MaterialScience will relocate its Kansai region offices to the Innovation Center in Amagasaki. This move will strengthen the subgroup's organization in order to respond even more quickly to future business opportunities.
Our Mission-Providing People with a "Better Life"
Last year Bayer celebrated its 150th anniversary and a long history of innovation that has produced many products and services for providing people with a "Better Life." Hausner comments, "In the years ahead, Bayer in Japan will continue to launch new products and implement development activities that directly provide a 'Better Life' to people. In so doing, we will be able to both live up to our mission statement of 'Bayer: Science For A Better Life' and achieve further dynamic growth of Bayer in Japan."
Under Bayer in Japan's Growth Strategy, a roadmap announced in November 2012 that clearly defines growth targets of each subgroup's strategy for a five-year period, Bayer in Japan is steadily working towards the goal of raising its annual sales to 330 billion yen by 2017, based on an average annual growth rate of at least 7%. In addition, Bayer in Japan plans to invest a total of more than 500 million Euros in R&D up to 2017 in order to promote innovation across all its businesses in Japan.
About Bayer in Japan
In Japan, Bayer is known as the company that developed Aspirin, an antipyretic-analgesic that has been on the market for more than 100 years. Bayer in Japan offers high value-added products and services in a broad range of fields, from healthcare, crop science and high-tech materials to contribute to the health and living of general consumers and the industry. Bayer in Japan has total sales of 268,806 million yen (FY2013) and 3,360 employees.
This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer's public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.