GERMAN CHEMICALS and drugs group Bayer expects higher profit margins and sales at its healthcare division over the next three years, where product launches are set to boost prescription drug sales by 16 per cent.
The healthcare division, which also makes non-prescription and animal health drugs, contrast agents and blood glucose metres, is aiming for sales of roughly €20 billion in 2014, up from €17.2 billion last year, Germanys largest drugmaker said yesterday.
Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) at the unit should reach at least 28 per cent of sales by the same date, up from 27.4 per cent in 2011, it added.
Bayer is pinning its hopes on new drug launches to lift earnings in the coming years, while its plastics division struggles with high raw materials costs.
Bayer said prescription drug sales were set to rise to about €11.5 billion by 2014, up 16 per cent from 2011.
At its plastics unit, called MaterialScience, Bayer said only that it expected sales volumes to rise at a higher rate than global economic growth. – (Reuters)
