Restructuring Healthcare

Bayer To Reorganize After Spin-Off

Bayer Marijn Dekkers CEO source DPA
Marijn Dekkers, Bayer CEO, is reorganizing the German firm.
  • Why it matters

    Why it matters

    Bayer’s reorganization could help it to better compete with rivals, including Pfizer and Novartis.

  • Facts


    • Bayer sells drugs and crop protection products; it will spin off its plastics and chemicals business next month.
    • Healthcare is Bayer’s most important line of operations, accounting for almost half of the company’s revenue and two-thirds of operating profit.
    • Bayer bought Merck’s over-the-counter drugs operations last year for almost $14 billion.
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Marijn Dekkers, the chief executive of Bayer, is pushing to increase the pace of change at Germany’s largest drugs maker.

Covestro, the company’s plastics subsidiary, is going public on the 2nd of October and the share sale could net around €2.5 billion, or $2.8 billion, Bayer said on Friday.

Moreover, the supervisory board signed off on the Dutchman’s second major project in the far-reaching corporate restructuring: Bayer has decided to scrap the management holding company with independent subgroups by January 1, 2016.

Instead, an integrated and centrally-lead corporation will be created, whose new executive board will also be responsible for the operative business. Bayer will be based in the future on three divisions: Pharma, which sells prescription drugs, Consumer Health, which sells over-the-counter drugs, and Crop Science, which produces pesticides, amongst others.

Another change of note will be the first female executive board member at Bayer, something never seen in the company’s 152-year history. Beginning January 1, 2016, the native South African Erica Mann is moving up to the executive floor as head of the new Consumer Health Division.

The 56-year-old has been heading up Bayer’s consumer care business, which sells over-the-counter drugs like aspirin and Bepanthen, from the United States. Bayer’s over-the-counter business has grown tremendously, above all through the 2014 takeover of Merck & Co.’s consumer care division for just under $14 billion.

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