Bayer to spin off material science division into separate company
- Historically, Bayer has consisted of three individual pillars -- health care, crop science, and material science.
- MaterialScience will be spun off into a separate company, but will continue to be owned by Bayer.
- Bayer’s healthcare division has performed beyond expectations with strong sales of Xarelto (rivaroxaban) and other products.
The decision to spin off MaterialScience was made on September 2. With the separation of the three companies, there will be greater focus on the healthcare division, which has performed especially well because of several lading candidates, including Xarelto, Eylea (afibercept), and two new cancer treatments, Xofigo (radium 223) and Stivarga (regoafenib).
Based on the strength of the healthcare division's sales, Q3 revenues forecasts have been upgraded from $7.1 billion to $9.7 billion.