Berlin (AFP) – German giant Bayer raised its annual forecasts on Tuesday, driven by the dynamism of its prescription drug business, but warned that Europe risked becoming "a pharmaceutical desert" if prices did not increase.

Published on: 03/11/2026 - 11:47

The Leverkusen (west) group is now targeting in a press release an adjusted operating profit (Ebitda) before exceptional items of 9.8 to 10.3 billion euros, a range of 200 million euros higher than before.

The Ebitda margin before exceptional items of the pharmaceutical division was also increased by two points, expected between 25 and 27%.

“We have now reached a tipping point in the growth trajectory of +Pharmaceuticals+ (prescription drugs), and we are seeing positive dynamics”, notably drugs Nubeqa against prostate cancer and Kerendia against kidney failure, welcomed the chairman of the board Bill Anderson in a press release.

Around 10:00 GMT on the Frankfurt Stock Exchange, Bayer shares topped the Dax index, with an increase of 4.16%.

Mr. Anderson nevertheless complained at a conference presenting the results that drug prices in Europe were not high enough to compensate for inflation in production and research costs.

“Europe must not become a pharmaceutical desert, but that is where these price control policies risk leading us,” he assured.

Impairments

In the third quarter, the group recorded a net loss of 672 million euros, reduced by 30% year-on-year.

If the disputes linked to its subsidiary in agronomy, Monsanto, continue to weigh on Bayer, the loss over the period is explained above all by nearly 500 million euros in depreciation targeting two drugs.

Bill Anderson also stressed that Bayer is "making progress in reducing litigation" targeting its glyphosate herbicide produced by Monsanto and accused of being carcinogenic, supported by a decision in its favor from the US Supreme Court in June.

There will continue to be "individual" proceedings against Bayer regarding the "Roundup", he nevertheless added, pending the final signing of a financial agreement to settle the lawsuits, worth up to $7.25 billion.

For the coming quarters, Bayer also expects more trials linked to PCB, a chemical compound banned in many countries since the 1980s.

These disputes are “much more complex” than those linked to glyphosate but also cyclical, noted Mr. Anderson.

In detail, in the third quarter, the pharmaceutical branch recorded revenue growth of 6.4% year-on-year at constant exchange rates, to 4.7 billion euros, after a more difficult first half.

This brought the group's turnover to 10.1 billion euros in the third quarter, an increase of 1.9%, and its Ebitda before exceptional items to 1.6 billion, an increase of 6.9%.

On the other hand, revenues from the agrochemicals activity, Bayer's main branch, decreased by 2.4% after a dynamic first half in the sale of seeds and herbicides.

“This mainly results from negative regulatory effects and unfavorable weather conditions,” the press release said.

An increase in production and distribution costs caused the collapse of 41.3% in Ebitda before exceptional items in this division.

© 2026 AFP

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