Bayer to strengthen global Pharmaceuticals production network
Planned investments of around €2bn over next three years / Shift of resources into strategic pharmaceutical areas by investing in key production sites, manufacturing technologies and supply chain network / Bayer is transforming its pharmaceutical division through enhanced focus on breakthrough innovation as well as through consolidation and modernization of its business operations
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Berlin, March 31, 2022 - Bayer announced today that it is strengthening the production network of its pharmaceutical division to ensure sustainable competitiveness and support the transformation of its pharmaceutical business based on breakthrough innovation delivering long-term, sustainable business growth. By investing into new technologies, automation, and digitalization, Bayer will implement a comprehensive program to substantially upscale its pharmaceutical manufacturing. Over the next three years Bayer will invest around 2 billion Euro into its manufacturing and supply chain capabilities.
"These investments into our supply network will support the success of our company’s pharmaceutical’s business long term," said Dr. Holger Weintritt, Head of Pharmaceuticals Product Supply and Member of Executive Committee at Bayer Pharmaceuticals. "As an important element of our overall pharmaceutical business strategy we will focus our manufacturing activities on supporting future key areas of growth in which we aim to change the treatment paradigm for patients. All of our company’s new technology platforms and modalities will benefit from this investment."
Bayer is planning to invest in its core manufacturing plants and strengthen their operational responsibilities to sustainably support the implementation of the company’s strategy for its pharmaceuticals business. A significant part of these investments will be made for enhanced capacities in biotechnology, further strengthening the company’s cell and gene therapy production as well as in the expansion of its manufacturing site in Berkeley, USA.
Germany will remain an important strategic manufacturing location for the company. The company’s Supply Center in Berlin will be transformed into a Center of Excellence for parenterals, and the Supply Center in Leverkusen into a Center of Excellence for non-hormonal solids. The Supply Center Bergkamen will become a Center of Excellence for contrast media and hormone products while expanding capacities for therapeutics. Major investments will also be made in the Supply Center in Wuppertal which are focused on launch production and new production technologies. In these sites the company will invest around 1 billion Euro over the next three years.
End of last year Bayer already announced an investment of over 400 million Euro at its sites in Turku, Finland, and Alajuela, Costa Rica, reinforcing its sustainability commitment to providing 100 million women with access to family planning by 2030, especially in low- and middle-income countries.
Whilst Bayer is strengthening its production network through these investments, it is analyzing in parallel which manufacturing activities might not be of strategic focus any longer. For example, the company has already divested its production plant in Karachi, Pakistan. To continue strengthening the competitiveness of its manufacturing capabilities by focusing on core activities and technologies the company’s manufacturing plant in São Paulo Cancioneiro, Brazil, will be transferred to a new operator. In addition, Bayer is planning to transfer parts of the infrastructure and services at the German sites in Bergkamen, Wuppertal and Berlin to external partners.
Bayer is a global enterprise with core competencies in the life science fields of health care and nutrition. Its products and services are designed to help people and planet thrive by supporting efforts to master the major challenges presented by a growing and aging global population. Bayer is committed to drive sustainable development and generate a positive impact with its businesses. At the same time, the Group aims to increase its earning power and create value through innovation and growth. The Bayer brand stands for trust, reliability and quality throughout the world. In fiscal 2021, the Group employed around 100,000 people and had sales of 44.1 billion euros. R&D expenses before special items amounted to 5.3 billion euros. For more information, go to www.bayer.com.
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This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer’s public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.