Bayer AG posted its profit for the fourth quarter of 2013, which increased by 24% and reached 455 million euros but was still well bellow analysts estimates of an average 626 million euros. As reported by the Wall Street Journal, the increase was partly due to litigation expenses during 2012s last quarter.
The adjusted profit of the company for the quarter before interest, taxes, depreciation, amortization and special items declined by 3.1% and reached 1.77 billion euro, missing analysts projections of 1.92 billion euro. The earnings of Bayer AG for the period are considered to be suffering due to higher research and development costs, as well as currency swings in Japan and emerging markets.
Bayer AG also announced a forecast for slower growth in 2014 due to currency effects. However, the company boosted its expectations for record sales of its new drugs, including Xarelto. Bayer AG made an official statement today, revealing its forecasts for its five most important new medicines. The company said it expects at least 7.5 billion euros (10.3 billion dollars) on a yearly basis in combined revenue. The last forecast of the company was of 5.5 billion euros.
The companys sales increased by 0.3% to 9.89 billion euros, trailing analysts forecasts of 9.97 billion euro. They were pushed by Bayer AGs new drugs and strong volumes at the CropScience division.
Marijn Dekkers, who is the Chief Executive Officer of Bayer AG, said, cited by the Wall Street Journal: “We have now significantly increased our estimate of the combined peak annual sales potential of these five products to at least 7.5 billion euros.”
The company projected that its Xarelto sales, which is considered as the key component of its new drug program, will reach 3.5 billion euros on a yearly basis. According to data compiled by Bloomberg, its sales will reach 2.74 billion euros by 2018.
One of the analysts, who work for Berenberg Bank wrote in a report, cited by Bloomberg: “While the near-term guidance is disappointing and near-term consensus will have to come down, the long-term story is robust and intact.”
Bayer AGs shares rose by 0.63% in Frankfurt by 10:06 GMT and traded at 100.40 euros, raising the companys market value to 83.6 billion euros.
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