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Bayer logo at Cologne / Bonn Airport (archive image)
Photo: Oliver Berg / dpa
Bayer intends to advance its pharmaceutical research with the acquisition of the US company Vividion, which specializes in protein analysis.
The Leverkusen-based pharmaceutical and agrochemical company will cost up to two billion dollars for the takeover.
1.5 billion of this should flow after the transaction is expected to be completed in the third quarter.
Another up to 500 million are possible, depending on the success, said the company.
Bayer had to be quick because Vividion was also pursuing plans for an IPO and had already submitted initial documents to the authorities.
"It only took seven weeks from the first phone call to the signature," said Bayer Pharmaceutical Manager Stefan Oelrich.
Vividion is researching ways to address disease-causing proteins, for which there are currently no treatment options, with drugs.
These include certain types of cancer and immunological diseases such as irritable bowel syndrome.
The US company uses its technology to examine the surfaces of proteins for potential binding sites, so-called binding pockets.
Medicines could then possibly dock on to these.
Bayer had recently spent a lot of money on acquisitions that should strengthen the prospects for the pharmaceutical division.
The company recently built a platform for the development of gene and cell therapies.
In addition to new cancer drugs and cardiovascular drugs, this should help to drive growth again after a dip in sales expected for 2024.
In various countries, for example, the patents for the anticoagulant Xarelto and the eye medicine Eylea will gradually expire.
Share price collapses
Despite the acquisition, Bayer's share price fell by up to six percent on Thursday morning as the bottom of the list in the Dax.
Bayer had previously presented figures according to which high costs and negative exchange rate effects are causing problems for the agrochemical and pharmaceutical company.
CEO Werner Baumann is forecasting more sales than before in 2021 thanks to the recovery in the pharmaceutical business and high demand for seeds and pesticides. In percentage terms, however, according to the company, this will probably be less likely than previously promised. The bottom line was that from April to June there was a billion-dollar loss due to renewed provisions for possible charges in the US glyphosate litigation.
Sales grew by eight percent to just under 10.9 billion euros in the second quarter. Adjusted for negative exchange rate effects as well as acquisitions and sales of parts of the company, this corresponds to an increase of almost 13 percent. However, Bayer was unable to convert the sales development into profits. Higher production costs in the agricultural division, provisions for variable remuneration components for employees and currency effects all contributed to this. The operating profit (adjusted Ebitda) therefore fell by around eleven percent to just under 2.6 billion euros.
It was only at the end of June that Baumann announced additional loan loss provisions totaling 4.5 billion gross dollars before taxes and discounting.
The step was taken as a precaution should the Supreme Court, as the highest US court, either not accept a landmark glyphosate case for trial or rule in the interests of the plaintiff.
Because then Bayer wants to set up its own program to deal with further lawsuits in the glyphosate case.
A decision by the Supreme Court is expected in the coming year.
dab / dpa
