German life sciences major Bayer has set a goal to return its pharmaceuticals division to mid-single-digit sales growth by 2027, as it moves past the impact of patent expiries on key legacy products.

Addressing investors at a major healthcare conference, Stefan Oelrich, head of Bayer’s pharmaceuticals business, said the company expects 2026 to be the final year significantly affected by the loss of exclusivity on its blockbuster anticoagulant Xarelto. From 2027 onward, Bayer anticipates a recovery driven by newer medicines and pipeline progress.

For 2025, Bayer reiterated its outlook for the pharma division, projecting currency- and portfolio-adjusted sales growth of 0 to 3 per cent, along with an adjusted EBITDA margin of 24 to 26 per cent. The company expects profitability to improve steadily as revenue pressure from patent losses eases.

Bayer’s growth strategy is anchored around newer products, including Nubeqa for prostate cancer, Kerendia for kidney disease, Beyonttra for cardiovascular conditions, and Lynkuet for menopausal symptoms. The company is also closely watching the development of Asundexian, an investigational anticoagulant that has regained momentum following encouraging clinical data.

Looking further ahead, Bayer is targeting an operating margin of around 30 per cent by 2030, with margin expansion expected to begin from 2028 as product mix improves and operational efficiencies increase.

Acknowledging investor concerns over recent performance, Bayer’s leadership expressed confidence that the pharmaceuticals business is positioned for a sustained turnaround, supported by its late-stage pipeline and expanding portfolio of growth drivers.