Day of accounts for Bayer, but not only. The German pharmaceutical group has, in fact, announced the acquisition of the American Vividion, a biotech specialist in innovative techniques for the treatment of cancer, for a figure that could reach 2 billion dollars (1.7 billion euros). The German group will pay $ 1.5 billion immediately and $ 500 million in subsequent payments, based on the company’s performance.
“Vividion’s unique technologies and expertise will significantly enhance our new drug research and development capabilities,” said Stefan Oelrich, president of Bayer’s pharmaceutical division. Under the terms of the agreement, Vividion will continue to operate as an independent organization and the acquisition is expected to close in the third quarter of this year.
Bayer also published the half-year financial report which showed sales up to € 23.182 billion from € 22.9 billion in the first half of 2020. EBIT, including extraordinary items, improved to € 802 million from a negative figure of € 8.285 billion. of 2020. Extraordinary items weighed 3.9 billion, of which 3.3 billion due to legal risks and due to the dispute still open with the American Supreme Court regarding the Roundup affair, a glyphosate-based herbicide deemed harmful and due to of lymphomas. EBITDA amounted to 3.3 billion from -5.8 billion in the first half of 2020, 6.7 billion adjusted, down from 7.3 billion.
In fact, Bayer inherited Roundup and the related litigation as part of the $ 63 billion acquisition of Monsanto in 2018. On August 2, the company decided on a new provision in the balance sheet in the face of the evolution of legal disputes in the United States. related to the use of glyphosate. The provision is equal to 3.8 billion against the “potential long-term exposure”.
The decision was made following the ruling of a US judge who, in May, rejected the plan proposed by Bayer to limit the costs for the compensation of damages to health charged to the use of the herbicide. The sum offered, about 1.8 billion, and the compensation methods were deemed inadequate, as, according to the magistrate, they do not protect those who used the product after February 2021 (deadline proposed by Bayer), thus reporting damages not yet make certain.
The net result of the group saw a loss of 246 million, but a clear improvement from the red of 8 billion in the first half of 2020. The group, after the performance of the half year, has revised its outlook upwards. In particular, a turnover of 43 billion is expected for fiscal year 2021, compared to the previously estimated 41 billion. EBITDA before extraordinary items is seen within the range of 10.6-10.9 billion compared to the previous 10.5-10.8 billion. Earnings per share should now be between € 6.40 and € 6.60 (previously it was estimated between € 6.10 and € 6.30).
But on the Frankfurt stock exchange, Bayer stock fell by 4.89% to € 47.38 after an intraday low of € 46.78, level on 21 December 2020, due to a lower than expected second quarter adjusted EBITDA: and fell 10.6% to 2.58 billion, below analysts’ expectations at 2.79 billion. “Higher prices and volumes, coupled with the contribution of ongoing efficiency programs, have only partially offset the cost increase,” Bayer explained. Barclays analysts said investors may be concerned about the impact of cost inflation in the Crop Science division, which includes the Roundup brand of herbicides. (All rights reserved)
