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Following these announcements, the title lost close to 1.8% at the end of the session in Frankfurt, while the index of European pharmaceutical stocks, of which it is a part, advanced for its part. This brings to more than 38% the decline in the stock since the beginning of the year against + 2.7% for the sector index over the period.
Bayer is particularly plagued by the fact that a Californian jury considered in early August Monsanto Roundup weed killer, a company bought for 63 billion dollars (55 billion euros), was at the origin of the cancer developed by a drug agent. 'interview. More than 9,000 similar procedures are currently under review in the United States.
Bayer also faces calls for a simplification of its structure.
The group said it would sell its animal health division, valued at six to seven billion euros by analysts.
This division is number five in the sector behind Zoetis (a former Pfizer subsidiary), Elanco, the unlisted group Boehringer Ingelheim (which acquired Sanofi's animal health assets) and Merck & Co.
In 2017, Bayer's animal health division generated sales of 1.57 billion euros, representing 4.5% of the group's total sales.
Bayer is also reviewing its strategic options for its Coppertone sun creams and Dr. Scholl foot care products, iconic brands acquired through the 2014 acquisition of Merck & Co's consumer health division for $ 14 billion.
Bayer is also seeking a buyer for its 60% stake in Currenta, a service provider in the chemical industry.
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The German diversified group also wants to cut about 12,000 jobs out of 118,200 worldwide as part of a cost-cutting program.
In its consumer health and pharmaceuticals divisions, Bayer will record an impairment charge of approximately € 3.3 billion in the fourth quarter.
The brands acquired from Merck & Co and the activities of Dihon Pharmaceutical, a specialist in traditional Chinese medicine bought in 2014, alone represent 2.7 billion euros of the $ 3.3 billion announced.
The sales revenue of the consumer health division, which offers non-prescription treatments, has declined as consumers in the United States prefer to buy cheaper drugs on the internet.
Over the first nine months of 2018, Bayer's consumer health product sales declined 0.4% excluding the currency effect, following a 1.7% decline in 2017.
Bayer is targeting adjusted earnings per share of € 6.80 in 2019, compared to € 5.70 to € 5.90 expected this year, with a target of around € 10 for 2022.
The profit margin before interest, taxes, depreciation and amortization (EBITDA), before exceptional items, is expected to increase by more than 30% by 2022, compared to 26.5% last year.
(Claude Chendjou for French service, edited by Benoit Van Overstraeten)
by Ludwig Burger
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