Rumors of a reorganization for Bayer are starting to firm up. It's underway and expected to be completed in 2016, according to a recent letter to employees that Bloomberg cited.
The reorg is expected to make the conglomerate, Germany's largest drugmaker, focused solely on the life sciences including biopharma and crop sciences. A public listing is planned to spin out its MaterialScience plastics unit; that's slated for mid-2016 at the latest, according to Bloomberg.
"We will be a pure life-sciences company and must organize ourselves as such" after MaterialScience is listed, Bayer spokesperson Guenter Forneck told Bloomberg.
Bloomberg cites an analyst estimate that the MaterialScience business is worth almost $12 billion. The company is continuing to explore a sale of its diabetes device business.
Bayer's Medical Care business is comprised of diabetes care and diagnostic imaging. Last quarter, Medical Care declined by 4% and the company attributed the drag on growth to diabetes care, noting that it "continues to be hampered by reimbursement pressure and price declines in the U.S. and lower demands in Europe."
The core product for the diabetes unit is blood glucose meter Contour. Sales for it declined by 10% on a currency adjusted basis during the first nine months to €478 million ($594 million) from €543 million ($674 million) during the same period in 2013. Due to these declines, it was Bayer's worst performing product during the period.
Last year, Bayer sold its interventional device business to Boston Scientific ($BSX) for $415 million.
- here is the Bloomberg article