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Bayer Group Q2 Loss Narrows, Lifts FY Outlook; To Buy Vividion Therapeutics

Bayer Group (BAYZF.PK,BAYRY.PK,BYR.L) reported that its second-quarter net loss narrowed to 2.335 billion euros or $2.38 euros per share from 9.548 billion euros or 9.72 euros per share last year.

Core earnings per share from continuing operations increased by 1.3 percent to 1.61 euros.

Group sales for the second quarter increased by 12.9 percent on a currency- and portfolio-adjusted basis (Fx & portfolio adj.) to 10.854 billion euros, after the prior-year period had been significantly impacted by the restrictions introduced in response to COVID-19.

Bayer said it is also optimistic for the remainder of the year and raised its guidance accordingly. After adjusting for currency effects, the company now expects to post sales of approximately 44 billion euros compared to the prior estimation of approximately 42 billion euros to 43 billion euros. Core earnings per share are now expected to come in at approximately 6.40 euros to 6.60 euros on a currency-adjusted basis compared to the prior outlook of 6.10 euros to 6.30 euros.

The company now expects sales of approximately 43 billion euros for fiscal 2021 compared to the prior estimation of approximately 41 billion euros. Core earnings per share are now projected to come in at approximately 6.00 euros to 6.20 euros compared to the prior outlook of approximately 5.60 euros to 5.80 euros.

In a separate press release, Bayer AG announced the acquisition of Vividion Therapeutics Inc., a US-headquartered biopharmaceutical company utilizing novel discovery technologies to unlock high value, traditionally undruggable targets with precision therapeutics.

As per the terms of the deal, Bayer will pay an upfront consideration of $1.5 billion and potential success-based milestone payments of up to $500 million.

Closing of the transaction is expected to take place in third-quarter of 2021.

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