On July 27, 2016 Kite Pharma, Inc. (Nasdaq:KITE), a clinical-stage biopharmaceutical company focused on developing engineered autologous T-cell therapy (eACT) products for the treatment of cancer, reported that the Company has entered into an exclusive, worldwide license with the National Institutes of Health (NIH) for intellectual property related to a fully human anti-CD19 chimeric antigen receptor-based product candidate directed against B-cell malignancies (Press release, Kite Pharma, JUL 27, 2016, View Source [SID:1234514080]). The National Cancer Institute (NCI), with Dr. James N. Kochenderfer, M.D., an investigator in the Experimental Transplantation and Immunology Branch of the NCI, is currently conducting a Phase 1 clinical trial of the product candidate in patients with B-cell malignancies under an existing Cooperative Research and Development Agreement (CRADA) between Kite and the NCI.

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"The expansion of our CAR-T pipeline to include a fully human anti-CD19 chimeric antigen receptor supports our effort to maximize the potential benefit of CAR-T therapies for patients with advanced B-cell malignancies. As the field of T-cell therapy continues its rapid advancement, we remain committed to collaborating with the world’s most distinguished institutions and accessing the most significant enabling technologies to pioneer the next generation of T-cell therapies," said Arie Belldegrun, M.D., FACS, Chairman, President, and Chief Executive Officer.

On July 27, 2016 Onxeo S.A. (Euronext Paris, Nasdaq Copenhagen: ONXEO), an innovative company specialized in the development of orphan oncology therapeutics, reported it has entered into an exclusive license agreement with Pint Pharma for the commercialization of Beleodaq (belinostat), Onxeo’s pan-HDAC inhibitor for PTCL (peripheral T-cell lymphoma), in key South American countries (Press release, Onxeo, JUL 27, 2016, View Source [SID:1234514079]). Beleodaq is approved in the US, and has been marketed by Spectrum Pharmaceuticals since July 2014 as a 2nd-line treatment for PTCL.

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Pint Pharma is a private specialty pharma company well experienced in commercializing orphan drugs and highly specialized products in South American healthcare markets.

Under the terms of the agreement, Pint Pharma will register, commercialize, and promote Beleodaq in seven countries: Argentina, Brazil, Chile, Colombia, Ecuador, Peru, and Venezuela.

Onxeo will receive an upfront payment from Pint Pharma, regulatory and commercial milestone as well as double-digit royalties on the net sales of Beleodaq in these territories, representing a deal value of over USD 20 million.

"We are extremely pleased to announce this exclusive licensing agreement for Beleodaq, and to have Pint Pharma as a strategic partner in South America. This is the second Beleodaq licensing agreement, demonstrating our product’s commercial potential as well as its clinical value. We look forward to a close collaboration with Pint Pharma as we leverage their team’s strong expertise in this region to provide access to our treatment to a greater number of PTCL patients," commented Judith Greciet, CEO of Onxeo.

While initiating the regulatory procedures to obtain market approval, Pint Pharma also plans to make Beleodaq available to PTCL patients through Early Access Programs (EAPs) in eligible countries by the end of 2016.

"This collaboration agreement with Onxeo is a great opportunity for us to expand our hematology franchise and strengthen our leadership position in the South American oncology market. We are thrilled to be working with Onxeo, a company that shares our values and commitment to making innovative therapeutics available to patients suffering from rare diseases," commented David Muñoz, CEO of Pint Pharma.

On July 27, 2016 Laboratory Corporation of America Holdings (LabCorp) (NYSE:LH), the world’s leading healthcare diagnostics company, and Sequenom, Inc. (NASDAQ:SQNM), a pioneer in non-invasive prenatal testing (NIPT) for reproductive health, reported that they have entered into a definitive agreement and plan of merger under which LabCorp would acquire all of the outstanding shares of Sequenom in a cash tender offer for $2.40 per share, or an equity value of $302 million, which represents a total enterprise value of approximately $371 million, including net indebtedness (Press release, LabCorp, JUL 27, 2016, View Source [SID:1234514064]).

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"Sequenom’s market-leading NIPT and genetic testing capabilities will advance LabCorp’s strategy to deliver world-class diagnostic solutions," said David P. King, chairman and chief executive officer of LabCorp. "This is exactly the kind of strategic acquisition that LabCorp seeks: Sequenom was the first laboratory to offer a clinically validated NIPT test (MaterniT21) and has performed more than 500,000 tests to date. Sequenom’s proven best-in-class technology and strong research complement LabCorp’s extensive women’s health offering, providing patients and physicians with one source for the most complete range of testing options in women’s health, including NIPT and reproductive genetics."

King added, "Sequenom expands LabCorp’s geographic reach both domestically and internationally, offering services through licensing and commercial partnerships with an emphasis on the European Union and Asia Pacific. The addition of Sequenom to the LabCorp family meets our stated financial criteria, and creates a market leader in NIPT, women’s health and reproductive genetics, furthering our mission to improve health and improve lives around the globe."

"We are extremely excited to join LabCorp in its mission to deliver world-class diagnostic solutions," said Dirk van den Boom, Ph.D., president and CEO, Sequenom. "Strategically, this transaction makes sense. LabCorp is the world’s leading healthcare diagnostics company, providing comprehensive clinical laboratory and end-to-end drug development services. Sequenom is a pioneer in noninvasive prenatal testing for reproductive health. Over the last nine months, Sequenom has vastly enhanced its technology, operations, and business prospects. The opportunities this transaction presents are significant and important both for our reproductive health business as well as our liquid biopsy strategy. Becoming part of LabCorp helps Sequenom reach a much broader market for our innovative testing."

Under the terms of the agreement and plan of merger, LabCorp has formed an acquisition subsidiary, Savoy Acquisition Corp., that will commence a tender offer to purchase all outstanding shares of Sequenom for $2.40 per share. Following the completion of the tender offer, LabCorp expects to consummate a merger of Savoy Acquisition Corp. and Sequenom in which shares of Sequenom that have not been purchased in the tender offer will be converted into the right to receive the same cash price per share as paid in the tender offer. The tender offer and the merger are subject to customary closing conditions set forth in the merger agreement, including the acquisition by Savoy Acquisition Corp. of a majority of Sequenom’s outstanding shares at the time of the consummation of the tender offer and the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The closing of the acquisition is expected by year end.

The board of directors of Sequenom, having determined that the offer and the merger are advisable, fair to, and in the best interests of Sequenom and its stockholders, approved the agreement and plan of merger and the other transactions contemplated thereby, including the tender offer, and recommended that Sequenom’s stockholders accept the offer and tender their shares in the offer when it is made.

JP Morgan is acting as financial advisor to Sequenom in connection with the transaction, and Cooley LLP is providing legal advice. Barclays is acting as financial advisor to LabCorp, and Hogan Lovells is providing legal advice.

On July 27, 2016 The Bayer Group reported further growth in the second quarter of 2016 (Press release, Bayer, JUL 27, 2016, View Source [SID:1234514052]).

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“Our Life Science businesses recorded encouraging sales and earnings growth overall,” said CEO Werner Baumann when he presented the interim report for the second quarter on Wednesday. At Pharmaceuticals, Bayer benefited from the continued strong development of the recently launched products. Consumer Health increased sales, while EBITDA before special items receded. Sales of Crop Science held steady at the prior-year level despite a continuingly difficult market environment, while earnings decreased. EBITDA before special items at Animal Health declined despite sales growth. Covestro registered a substantial increase in EBITDA before special items, while sales fell as expected. “We remain confident about the year as a whole and are raising the Group forecast,” said Baumann.

Sales of the Bayer Group fell by 1.4 percent to EUR 11,833 million (Q2 2015: EUR 12,003 million) on a reported basis in the second quarter of 2016, but increased by 2.3 percent after adjusting for currency and portfolio effects (Fx & portfolio adj.). Despite negative currency effects of EUR 90 million, dissynergies from the Covestro IPO and the divestiture of Diabetes Care, Group EBITDA before special items improved by 5.7 percent to EUR 3,054 million (Q2 2015: EUR 2,888 million). EBIT advanced by 17.3 percent to EUR 2,138 million (Q2 2015: EUR 1,823 million) after special charges of EUR 104 million (Q2 2015: EUR 255 million). These mainly comprised expenditures for efficiency improvement measures, costs for the integration of acquired businesses and expenses in connection with the realignment of the Bayer Group. Net income rose by 18.6 percent to EUR 1,380 million (Q2 2015: EUR 1,164 million). Core earnings per share from continuing operations advanced by 4.0 percent to EUR 2.07 (Q2 2015: EUR 1.99).

Gross cash flow from continuing operations climbed by a substantial 9.3 percent to EUR 2,366 million (Q2 2015: EUR 2,165 million). Despite an increase in cash tied up in working capital, net cash flow (total) edged forward by 1.2 percent to EUR 1,982 million (Q2 2015: EUR 1,959 million). Net financial debt increased by EUR 1.5 billion compared with March 31, 2016, to EUR 17.8 billion on June 30, 2016, due mainly to the dividend payment.

Strong gains at Pharmaceuticals

Sales of prescription medicines (Pharmaceuticals) rose by 5.5 percent (Fx & portfolio adj. 8.4 percent) to EUR 4,104 million (Q2 2015: EUR 3,890 million). “This gratifying performance was driven by the continued strong development of our recently launched products,” explained Baumann. The oral anticoagulant Xarelto, the eye medicine Eylea, the cancer drugs Xofigo and Stivarga, and Adempas to treat pulmonary hypertension achieved total combined sales of EUR 1,332 million (Q2 2015: EUR 1,051 million), expanding by 28.8 percent on a currency-adjusted (Fx adj.) basis. Xarelto once again posted encouraging sales gains with growth of 30.1 percent (Fx adj.), due mainly to volume increases in Europe and Japan. Business with Xarelto also developed positively in the United States, where it is marketed by a subsidiary of Johnson & Johnson. Bayer considerably raised sales of Eylea (Fx adj. plus 40.9 percent) in all regions, particularly in Europe, Canada and Japan.

Among the leading established pharmaceutical products, sales of Aspirin Cardio for secondary prevention of heart attacks moved ahead by 16.4 percent (Fx adj.). This increase resulted mainly from gains in China, as did the 6.6 percent (Fx adj.) improvement in sales of the oral diabetes treatment Glucobay. Sales of the MRI contrast agent Gadavist/Gadovist rose by 28.8 percent (Fx adj.) thanks to substantial volume gains in the United States and Japan. As the result of advance orders from Bayer’s distributor in the first quarter, sales of the blood-clotting medicines Kogenate/ Kovaltry decreased by 5.6 percent (Fx adj.). Sales of the multiple sclerosis product Betaferon/Betaseron posted an overall decline of 8.7 percent (Fx adj.) that was attributable in part to weaker business performance in Europe. Overall, Bayer expanded the Pharmaceuticals business (Fx adj.) in all regions.

EBITDA before special items of the division increased by a substantial 13.3 percent to EUR 1,352 million (Q2 2015: EUR 1,193 million) in the second quarter of 2016. As expected, the earnings contributions from the very good business development stood against high investments in research and development. Currency effects of around EUR 40 million had a diminishing effect.

Consumer Health achieves sales growth with strong brands

Sales of self-care products (Consumer Health) declined by 2.3 percent on a reported basis to EUR 1,553 million (Q2 2015: EUR 1,590 million), but increased by 4.0 percent after adjusting for currency and portfolio changes. Business developed well in the Latin America/Africa/Middle East, Europe and Asia/Pacific regions, while sales in North America were down compared with a strong prior-year quarter. “Our Claritin, Aspirin, Bepanthen/Bepanthol and Canesten brands posted very high growth rates,” said Baumann.

Sales of the antihistamine Claritin rose by a considerable 11.0 percent (Fx adj.). Despite a weak allergy season, business in the United States developed positively, due primarily to the launch of the ClariSpray nasal spray. Sales of the analgesic Aspirin increased by 8.1 percent (Fx adj.) and thus expanded year on year in all regions on a currency-adjusted basis, with especially attractive gains in Latin America and the United States. Bayer posted significant currency-adjusted sales growth (plus 20.7 percent) for the Bepanthen/Bepanthol wound and skin care products, particularly in Europe. The considerable increase in sales of the skin and intimate health brand Canesten (Fx adj. plus 19.0 percent) was attributable to expanded volumes in all regions, particularly in China and Germany. By contrast, business with the analgesic Aleve declined overall (Fx adj. minus 5.1 percent). The Dr. Scholl’s foot care products registered a decline in sales (Fx adj. minus 13.6 percent) because of a weaker market environment and increased competitive pressure in the United States.

EBITDA before special items of Consumer Health declined by 9.4 percent to EUR 328 million (Q2 2015: EUR 362 million). The earnings contributions from the good business performance and cost synergies were not sufficient to offset the higher selling expenses as well as allocation and currency effects of around EUR 25 million.

Crop Science business holds steady in a continuingly difficult market environment

Sales of the agricultural business (Crop Science) came in at EUR 2,518 million (Q2 2015: EUR 2,636 million). This amounted to a decline of 4.5 percent on a reported basis and an increase of 0.4 percent after adjusting for currency and portfolio effects. “Business at Crop Protection/Seeds was steady year on year despite an ongoing weak market environment,” said Baumann. Crop Science achieved gratifying business development in the Asia/ Pacific region, where sales rose by 8.4 percent (Fx adj.). Sales were up slightly year on year in Europe (Fx adj. plus 0.9 percent) and were level with the prior-year period in the Latin America/Africa/Middle East region (Fx adj. minus 0.2 percent). Sales in North America fell by 3.4 percent (Fx adj.).

At Crop Protection, the Fungicides business posted a gain of 6.0 percent (Fx & portfolio adj.). Sales of Herbicides also developed positively (Fx & portfolio adj. plus 3.9 percent), while sales of Insecticides declined by 11.9 percent (Fx & portfolio adj.). Business at SeedGrowth declined by 6.1 percent (Fx. & portfolio adj.), while sales at seeds receded by 4.8 percent due to seasonal effects. Sales at Environmental Science edged down by 1.2 percent year on year. Following the conclusion in May 2016 of an agreement to divest the Consumer business of Environmental Science, these activities are reported under discontinued operations. Environmental Science therefore now comprises only the business for professional users. The key data, prior-year figures and outlook are restated accordingly.

EBITDA before special items of Crop Science declined by 8.2 percent to EUR 663 million in the second quarter (Q2 2015: EUR 722 million). The higher cost of goods sold, slightly lower volumes and a negative currency effect of around EUR 10 million were compensated only in part by higher selling prices and lower selling expenses.
 
Animal Health records growth in all regions

Sales of the Animal Health business amounted to EUR 426 million (Q2 2015: EUR 428 million). Business was level year on year on a reported basis (minus 0.5 percent) and expanded by 4.2 percent after adjusting for currency and portfolio effects. All regions developed positively on a currency-adjusted basis, the strongest gains being registered in Europe. Sales of the Advantage family of flea, tick and worm control products declined (Fx adj. minus 3.7 percent), mainly as a result of higher competitive pressure. Sales of the Seresto flea and tick collar rose strongly (Fx adj. plus 44.6 percent), thanks especially to higher demand in the United States. Sales also increased in Europe. EBITDA before special items of Animal Health declined by 16.7 percent to EUR 100 million (Q2 2015: EUR 120 million), due especially to seasonal shifts in selling expenses and negative currency effects of around EUR 5 million.

Continuing favorable raw material price development at Covestro

Sales of Covestro fell by 6.6 percent (Fx & portfolio adj. 3.9 percent) in the second quarter compared with the prior-year period, to EUR 2,975 million (Q2 2015: EUR 3,185 million). Selling prices were down significantly, mainly due to raw material price development and primarily at Polyurethanes. Volumes were above the level of the prior-year quarter overall. EBITDA before special items of Covestro improved by 7.3 percent to EUR 543 million (Q2 2015: EUR 506 million). The impact of lower selling prices was more than compensated by the net effect of lower raw material prices and higher volumes. Earnings were diminished by a negative currency effect of around EUR 5 million.

Life Science businesses post good development in the first half

Sales of the Bayer Group in the first half of 2016 came to EUR 23,687 million (H1 2015: EUR 23,796 million). Sales were level with the previous year on a reported basis (minus 0.5 percent) and increased by 2.8 percent after adjusting for currency and portfolio effects. EBITDA before special items advanced by 10.9 percent to EUR 6,441 million (H1 2015: EUR 5,810 million). The good sales development particularly in the Life Science businesses was accompanied by high R&D and selling expenses. Earnings were held back by negative currency effects of around EUR 150 million. Net income rose by 15.7 percent to EUR 2,891 million (H1 2015: EUR 2,498 million). Core earnings per share from continuing operations advanced by 9.1 percent to EUR 4.42 (H1 2015: EUR 4.05).

Confidence for the full year 2016

For the second half of 2016, Bayer is using the exchange rates prevailing on June 30, 2016, including a EUR-USD rate of 1.11. For the full year 2016, the company is now planning sales of EUR 46 billion to EUR 47 billion (previously: more than EUR 47 billion) for the Bayer Group including Covestro. This continues to correspond to a low-single-digit percentage increase (Fx & portfolio adj.). Bayer now plans to increase EBITDA before special items by a high-single-digit (previously: mid-single-digit) percentage. It is now Bayer’s aim to increase core earnings per share from continuing operations by a mid- to high-single-digit percentage (previously: a mid-single-digit percentage). This takes into account Covestro’s inclusion at around 64 percent starting on April 19, 2016 (January 1 to April 18, 2016: around 69 percent).

The Bayer Group continues to plan sales of approximately EUR 35 billion for the Life Science activities, i.e. the Bayer Group excluding Covestro. This still corresponds to a mid-single-digit percentage increase (Fx & portfolio adj.) as previously forecasted. Bayer now plans to increase EBITDA before special items by a mid- to high-single-digit (previously: mid-single-digit) percentage. This planning includes dissynergies of around EUR 130 million from the legal independence of Covestro and from divestments.

For Pharmaceuticals, Bayer now expects sales above EUR 16 billion (previously: approximately EUR 16 billion) despite some price decreases. This now corresponds to a high-single-digit (previously: mid-single-digit) percentage increase (Fx & portfolio adj.). The company now plans to raise sales of the recently launched pharmaceutical products toward EUR 5.5 billion (previously: to more than EUR 5 billion). Bayer now expects a low-teens (previously: mid- to high-single-digit) percentage increase in EBITDA before special items at Pharmaceuticals. It aims to improve the division’s EBITDA margin before special items.

In the Consumer Health Division, Bayer now expects sales to come in at approximately EUR 6 billion (previously: more than EUR 6 billion). The company plans to grow sales by a low- to mid-single-digit (previously: mid-single-digit) percentage on a currency- and portfolio-adjusted basis. EBITDA before special items is now expected to come in on the level of the prior year (previously: increase by a mid-single-digit percentage).

In light of the continuingly weak market environment, Bayer now expects Crop Science sales to be on the prior-year level (previously: increase by a low-single-digit percentage) on a currency- and portfolio-adjusted basis. This is equivalent to reported sales of about EUR 10 billion. Bayer now expects a low-single-digit percentage decrease (previously: low-single-digit percentage increase) in EBITDA before special items.

At Animal Health, Bayer continues to expect sales to be slightly above the prior-year level and is still planning a currency- and portfolio-adjusted sales gain and an increase in EBITDA before special items, each by a low- to mid-single-digit percentage.

For 2016, Covestro is now expecting a sales decline (previously: sales at the prior-year level) and, for the second half of 2016, EBITDA after adjustment for special items at least at the prior-year level (previously: for the full year, a decline in EBITDA after adjustment for special items).

On July 27, 2016 The Bayer Group reported further growth in the second quarter of 2016 (Press release, Bayer, JUL 27, 2016, View Source [SID:1234514052]).

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“Our Life Science businesses recorded encouraging sales and earnings growth overall,” said CEO Werner Baumann when he presented the interim report for the second quarter on Wednesday. At Pharmaceuticals, Bayer benefited from the continued strong development of the recently launched products. Consumer Health increased sales, while EBITDA before special items receded. Sales of Crop Science held steady at the prior-year level despite a continuingly difficult market environment, while earnings decreased. EBITDA before special items at Animal Health declined despite sales growth. Covestro registered a substantial increase in EBITDA before special items, while sales fell as expected. “We remain confident about the year as a whole and are raising the Group forecast,” said Baumann.

Sales of the Bayer Group fell by 1.4 percent to EUR 11,833 million (Q2 2015: EUR 12,003 million) on a reported basis in the second quarter of 2016, but increased by 2.3 percent after adjusting for currency and portfolio effects (Fx & portfolio adj.). Despite negative currency effects of EUR 90 million, dissynergies from the Covestro IPO and the divestiture of Diabetes Care, Group EBITDA before special items improved by 5.7 percent to EUR 3,054 million (Q2 2015: EUR 2,888 million). EBIT advanced by 17.3 percent to EUR 2,138 million (Q2 2015: EUR 1,823 million) after special charges of EUR 104 million (Q2 2015: EUR 255 million). These mainly comprised expenditures for efficiency improvement measures, costs for the integration of acquired businesses and expenses in connection with the realignment of the Bayer Group. Net income rose by 18.6 percent to EUR 1,380 million (Q2 2015: EUR 1,164 million). Core earnings per share from continuing operations advanced by 4.0 percent to EUR 2.07 (Q2 2015: EUR 1.99).

Gross cash flow from continuing operations climbed by a substantial 9.3 percent to EUR 2,366 million (Q2 2015: EUR 2,165 million). Despite an increase in cash tied up in working capital, net cash flow (total) edged forward by 1.2 percent to EUR 1,982 million (Q2 2015: EUR 1,959 million). Net financial debt increased by EUR 1.5 billion compared with March 31, 2016, to EUR 17.8 billion on June 30, 2016, due mainly to the dividend payment.

Strong gains at Pharmaceuticals

Sales of prescription medicines (Pharmaceuticals) rose by 5.5 percent (Fx & portfolio adj. 8.4 percent) to EUR 4,104 million (Q2 2015: EUR 3,890 million). “This gratifying performance was driven by the continued strong development of our recently launched products,” explained Baumann. The oral anticoagulant Xarelto, the eye medicine Eylea, the cancer drugs Xofigo and Stivarga, and Adempas to treat pulmonary hypertension achieved total combined sales of EUR 1,332 million (Q2 2015: EUR 1,051 million), expanding by 28.8 percent on a currency-adjusted (Fx adj.) basis. Xarelto once again posted encouraging sales gains with growth of 30.1 percent (Fx adj.), due mainly to volume increases in Europe and Japan. Business with Xarelto also developed positively in the United States, where it is marketed by a subsidiary of Johnson & Johnson. Bayer considerably raised sales of Eylea (Fx adj. plus 40.9 percent) in all regions, particularly in Europe, Canada and Japan.

Among the leading established pharmaceutical products, sales of Aspirin Cardio for secondary prevention of heart attacks moved ahead by 16.4 percent (Fx adj.). This increase resulted mainly from gains in China, as did the 6.6 percent (Fx adj.) improvement in sales of the oral diabetes treatment Glucobay. Sales of the MRI contrast agent Gadavist/Gadovist rose by 28.8 percent (Fx adj.) thanks to substantial volume gains in the United States and Japan. As the result of advance orders from Bayer’s distributor in the first quarter, sales of the blood-clotting medicines Kogenate/ Kovaltry decreased by 5.6 percent (Fx adj.). Sales of the multiple sclerosis product Betaferon/Betaseron posted an overall decline of 8.7 percent (Fx adj.) that was attributable in part to weaker business performance in Europe. Overall, Bayer expanded the Pharmaceuticals business (Fx adj.) in all regions.

EBITDA before special items of the division increased by a substantial 13.3 percent to EUR 1,352 million (Q2 2015: EUR 1,193 million) in the second quarter of 2016. As expected, the earnings contributions from the very good business development stood against high investments in research and development. Currency effects of around EUR 40 million had a diminishing effect.

Consumer Health achieves sales growth with strong brands

Sales of self-care products (Consumer Health) declined by 2.3 percent on a reported basis to EUR 1,553 million (Q2 2015: EUR 1,590 million), but increased by 4.0 percent after adjusting for currency and portfolio changes. Business developed well in the Latin America/Africa/Middle East, Europe and Asia/Pacific regions, while sales in North America were down compared with a strong prior-year quarter. “Our Claritin, Aspirin, Bepanthen/Bepanthol and Canesten brands posted very high growth rates,” said Baumann.

Sales of the antihistamine Claritin rose by a considerable 11.0 percent (Fx adj.). Despite a weak allergy season, business in the United States developed positively, due primarily to the launch of the ClariSpray nasal spray. Sales of the analgesic Aspirin increased by 8.1 percent (Fx adj.) and thus expanded year on year in all regions on a currency-adjusted basis, with especially attractive gains in Latin America and the United States. Bayer posted significant currency-adjusted sales growth (plus 20.7 percent) for the Bepanthen/Bepanthol wound and skin care products, particularly in Europe. The considerable increase in sales of the skin and intimate health brand Canesten (Fx adj. plus 19.0 percent) was attributable to expanded volumes in all regions, particularly in China and Germany. By contrast, business with the analgesic Aleve declined overall (Fx adj. minus 5.1 percent). The Dr. Scholl’s foot care products registered a decline in sales (Fx adj. minus 13.6 percent) because of a weaker market environment and increased competitive pressure in the United States.

EBITDA before special items of Consumer Health declined by 9.4 percent to EUR 328 million (Q2 2015: EUR 362 million). The earnings contributions from the good business performance and cost synergies were not sufficient to offset the higher selling expenses as well as allocation and currency effects of around EUR 25 million.

Crop Science business holds steady in a continuingly difficult market environment

Sales of the agricultural business (Crop Science) came in at EUR 2,518 million (Q2 2015: EUR 2,636 million). This amounted to a decline of 4.5 percent on a reported basis and an increase of 0.4 percent after adjusting for currency and portfolio effects. “Business at Crop Protection/Seeds was steady year on year despite an ongoing weak market environment,” said Baumann. Crop Science achieved gratifying business development in the Asia/ Pacific region, where sales rose by 8.4 percent (Fx adj.). Sales were up slightly year on year in Europe (Fx adj. plus 0.9 percent) and were level with the prior-year period in the Latin America/Africa/Middle East region (Fx adj. minus 0.2 percent). Sales in North America fell by 3.4 percent (Fx adj.).

At Crop Protection, the Fungicides business posted a gain of 6.0 percent (Fx & portfolio adj.). Sales of Herbicides also developed positively (Fx & portfolio adj. plus 3.9 percent), while sales of Insecticides declined by 11.9 percent (Fx & portfolio adj.). Business at SeedGrowth declined by 6.1 percent (Fx. & portfolio adj.), while sales at seeds receded by 4.8 percent due to seasonal effects. Sales at Environmental Science edged down by 1.2 percent year on year. Following the conclusion in May 2016 of an agreement to divest the Consumer business of Environmental Science, these activities are reported under discontinued operations. Environmental Science therefore now comprises only the business for professional users. The key data, prior-year figures and outlook are restated accordingly.

EBITDA before special items of Crop Science declined by 8.2 percent to EUR 663 million in the second quarter (Q2 2015: EUR 722 million). The higher cost of goods sold, slightly lower volumes and a negative currency effect of around EUR 10 million were compensated only in part by higher selling prices and lower selling expenses.
 
Animal Health records growth in all regions

Sales of the Animal Health business amounted to EUR 426 million (Q2 2015: EUR 428 million). Business was level year on year on a reported basis (minus 0.5 percent) and expanded by 4.2 percent after adjusting for currency and portfolio effects. All regions developed positively on a currency-adjusted basis, the strongest gains being registered in Europe. Sales of the Advantage family of flea, tick and worm control products declined (Fx adj. minus 3.7 percent), mainly as a result of higher competitive pressure. Sales of the Seresto flea and tick collar rose strongly (Fx adj. plus 44.6 percent), thanks especially to higher demand in the United States. Sales also increased in Europe. EBITDA before special items of Animal Health declined by 16.7 percent to EUR 100 million (Q2 2015: EUR 120 million), due especially to seasonal shifts in selling expenses and negative currency effects of around EUR 5 million.

Continuing favorable raw material price development at Covestro

Sales of Covestro fell by 6.6 percent (Fx & portfolio adj. 3.9 percent) in the second quarter compared with the prior-year period, to EUR 2,975 million (Q2 2015: EUR 3,185 million). Selling prices were down significantly, mainly due to raw material price development and primarily at Polyurethanes. Volumes were above the level of the prior-year quarter overall. EBITDA before special items of Covestro improved by 7.3 percent to EUR 543 million (Q2 2015: EUR 506 million). The impact of lower selling prices was more than compensated by the net effect of lower raw material prices and higher volumes. Earnings were diminished by a negative currency effect of around EUR 5 million.

Life Science businesses post good development in the first half

Sales of the Bayer Group in the first half of 2016 came to EUR 23,687 million (H1 2015: EUR 23,796 million). Sales were level with the previous year on a reported basis (minus 0.5 percent) and increased by 2.8 percent after adjusting for currency and portfolio effects. EBITDA before special items advanced by 10.9 percent to EUR 6,441 million (H1 2015: EUR 5,810 million). The good sales development particularly in the Life Science businesses was accompanied by high R&D and selling expenses. Earnings were held back by negative currency effects of around EUR 150 million. Net income rose by 15.7 percent to EUR 2,891 million (H1 2015: EUR 2,498 million). Core earnings per share from continuing operations advanced by 9.1 percent to EUR 4.42 (H1 2015: EUR 4.05).

Confidence for the full year 2016

For the second half of 2016, Bayer is using the exchange rates prevailing on June 30, 2016, including a EUR-USD rate of 1.11. For the full year 2016, the company is now planning sales of EUR 46 billion to EUR 47 billion (previously: more than EUR 47 billion) for the Bayer Group including Covestro. This continues to correspond to a low-single-digit percentage increase (Fx & portfolio adj.). Bayer now plans to increase EBITDA before special items by a high-single-digit (previously: mid-single-digit) percentage. It is now Bayer’s aim to increase core earnings per share from continuing operations by a mid- to high-single-digit percentage (previously: a mid-single-digit percentage). This takes into account Covestro’s inclusion at around 64 percent starting on April 19, 2016 (January 1 to April 18, 2016: around 69 percent).

The Bayer Group continues to plan sales of approximately EUR 35 billion for the Life Science activities, i.e. the Bayer Group excluding Covestro. This still corresponds to a mid-single-digit percentage increase (Fx & portfolio adj.) as previously forecasted. Bayer now plans to increase EBITDA before special items by a mid- to high-single-digit (previously: mid-single-digit) percentage. This planning includes dissynergies of around EUR 130 million from the legal independence of Covestro and from divestments.

For Pharmaceuticals, Bayer now expects sales above EUR 16 billion (previously: approximately EUR 16 billion) despite some price decreases. This now corresponds to a high-single-digit (previously: mid-single-digit) percentage increase (Fx & portfolio adj.). The company now plans to raise sales of the recently launched pharmaceutical products toward EUR 5.5 billion (previously: to more than EUR 5 billion). Bayer now expects a low-teens (previously: mid- to high-single-digit) percentage increase in EBITDA before special items at Pharmaceuticals. It aims to improve the division’s EBITDA margin before special items.

In the Consumer Health Division, Bayer now expects sales to come in at approximately EUR 6 billion (previously: more than EUR 6 billion). The company plans to grow sales by a low- to mid-single-digit (previously: mid-single-digit) percentage on a currency- and portfolio-adjusted basis. EBITDA before special items is now expected to come in on the level of the prior year (previously: increase by a mid-single-digit percentage).

In light of the continuingly weak market environment, Bayer now expects Crop Science sales to be on the prior-year level (previously: increase by a low-single-digit percentage) on a currency- and portfolio-adjusted basis. This is equivalent to reported sales of about EUR 10 billion. Bayer now expects a low-single-digit percentage decrease (previously: low-single-digit percentage increase) in EBITDA before special items.

At Animal Health, Bayer continues to expect sales to be slightly above the prior-year level and is still planning a currency- and portfolio-adjusted sales gain and an increase in EBITDA before special items, each by a low- to mid-single-digit percentage.

For 2016, Covestro is now expecting a sales decline (previously: sales at the prior-year level) and, for the second half of 2016, EBITDA after adjustment for special items at least at the prior-year level (previously: for the full year, a decline in EBITDA after adjustment for special items).