Bayer CEO says tougher cash outlook will be considered in overhaul By Reuters
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<span>© Reuters. FILE PHOTO: Logo and flags of Bayer AG are pictured outside a plant of the German pharmaceutical and chemical maker in Wuppertal, Germany August 9, 2019. REUTERS/Wolfgang Rattay/File Photo</span><br />
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<p>By Ludwig Burger and Patricia Weiss</p>
<p>FRANKFURT (Reuters) – Bayer (OTC:)’s strategic review will consider a potentially tougher outlook for cash flows, its CEO said on Tuesday, after the German conglomerate suffered a major drug development setback. </p>
<p>The group late on Sunday aborted a large late-stage trial testing a new anti-clotting drug due to lack of efficacy, throwing its most promising development project in doubt, and adding to litigation and debt problems.</p>
<p>“Anything that effects future cash flows negatively just makes that a little tighter,” CEO Bill Anderson said in an analyst call on Tuesday.</p>
<p>“The impact of these recent events does not change what our strategic options are. It just may mean that some of those conditions are a little tighter,” said Anderson, who has said he is considering a break-up of the maker of pharmaceuticals, non-prescription treatments and products for farmers.</p>
<p>He gave the example that a potential sale of the consumer products unit to a rival in the industry would generate more cash, and faster, than a partial spin-off on the stock market and gradual sale of any remaining shares over time.</p>
<p>The head of pharmaceuticals, Stefan Oelrich, said in the call that when reviewing the halted trial his team was surprised by a “marked difference” in efficacy of Bayer’s experimental anticoagulant asundexian in comparison to Bristol-Myers Squibb (NYSE:) and <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Pfizer </span></span> (NYSE:)’s established Eliquis.</p>
<p>The peak sales potential of more than 5 billion euros would be revised lower, but plans to bring the product to market in 2026 remained in place, albeit for a smaller patient group, Oelrich added. </p>
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