Bayer AG has set a target to return its pharmaceuticals business to mid-single-digit sales growth by 2027, as the company works through the impact of recent patent expiries and shifts focus to newer growth-driving medicines. The outlook was shared by Stefan Oelrich, head of Bayer’s pharmaceuticals division, during discussions at the JPMorgan Healthcare Conference in San Francisco.

Bayer’s pharma division has faced pressure following the loss of exclusivity on key products, including its blockbuster blood thinner Xarelto, which has weighed on revenues in recent years. The company indicated that 2026 is expected to be the final year to see a material impact from these patent expiries, after which sales performance is projected to stabilise and gradually improve.

For the near term, Bayer reaffirmed its 2025 guidance for the pharmaceuticals business, forecasting adjusted sales growth in the range of 0% to 3% on a currency- and portfolio-adjusted basis. The company also maintained its expectation of an adjusted EBITDA margin of 24% to 26%, reflecting continued focus on cost control and operational discipline during the transition period.

Looking ahead, Bayer expects growth momentum to be supported by increased contributions from its newer medicines. Products highlighted as key drivers include Nubeqa for prostate cancer, Kerendia for chronic kidney disease, Beyonttra for cardiovascular disease, and Lynkuet for menopausal symptoms. These therapies are positioned to offset revenue declines from products facing generic competition.

The company also pointed to progress in its late-stage pipeline, including Asundexian, an oral anticoagulant that has reported positive clinical data in stroke prevention. Bayer indicated that such pipeline assets are expected to play a role in rebuilding the scale of its cardiovascular portfolio over time.

Beyond growth, Bayer has outlined longer-term profitability objectives, with plans to increase pharmaceutical division margins to around 30% by 2030. Margin expansion is expected to begin from 2028, supported by portfolio optimisation and operational efficiency measures.

The updated outlook reflects Bayer’s efforts to stabilise its pharmaceuticals business following a period of patent-related headwinds, while positioning the division for a return to sustained growth over the medium term.