Bayer CropScience AG, a unit of German conglomerate Bayer AG (BAYRY.PK,BAYZF.PK), plans to invest about 7 billion euros or $9.1 billion through 2016, CEO Sandra Peterson said Thursday at the company's annual press conference in Monheim.
Sandra Peterson stated that the company is geared up for continued strong growth over the mid-term and Bayer CropScience is on track for above market growth.
The company expects its Seeds business to double to around 20 percent its contribution to its overall sales by 2016. The unit has recorded a 21 percent jump in sales in the first half helped by significant growth in broad acre crops.
As part of the investment program, Bayer CropScience is committing 5 billion euros for its Research and Development operations to develop new solutions for the farmer in seeds, novel chemical and biological crop protection.
The remaining 2 billion euros will be invested in new production capacities and seed processing facilities to meet rising global demand for agricultural raw materials.
The company said it expects products launched during the period to have a combined peak sales potential of at least 4 billion euros by 2016.
Peterson will be leaving the company at the end of November to join drug and healthcare giant Johnson & Johnson (JNJ) in the U.S. Last week, JNJ had announced the appointment of Peterson to the newly-created role of group worldwide chairman, effective December 1.
Separately, Bayer's HealthCare unit said it has submitted an application for marketing authorization in the European Union for a new transparent low dose contraceptive patch. France would serve as the reference member state in the decentralized procedure for gaining marketing authorization in countries in the European Union.
According to the company, the data from clinical trials, including 4,200 women globally, demonstrate that the new low dose contraceptive patch is an efficacious contraceptive with a good safety profile. The contraceptive patch is small, round and transparent and contains 0.55 mg ethinylestradiol and 2.1 mg gestodene.
"Once approved and launched, our contraceptive patch will provide an additional choice among contraceptive methods especially for women who are looking for an aesthetic, convenient weekly transdermal application with a low hormonal dose," said Flemming Ornskov, chief marketing officer - Strategic Marketing General Medicine at Bayer HealthCare Pharmaceuticals.
On Frankfurt's Xetra, Bayer shares are currently trading at 66.09 euros, up 1.01 percent, on a volume of 1.85 million shares.
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by RTT Staff Writer
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