Amid Bayer's massive reorganization, the company's pharma group is moving full steam ahead toward market expansions for key products.
Considering blood thinner Xarelto's 11% sales decline during the second quarter, those expansions are becoming all the more important. As Bayer's Xarelto falls prey to generics, the drugmaker is putting more weight behind oncology blockbuster hopeful Nubeqa and ophthalmology mainstay Eylea, among other meds.
In total, the company’s pharma division pulled in 4.6 billion euros ($5 billion) during the second quarter, good for 4.5% growth on a year-over-year basis.
Last year, Bayer and partner Regeneron launched a highly anticipated, longer-acting formulation of Eylea. Eylea’s launch in its new 8 mg dosage strength is “coming strong out of the gate,” resulting in momentum that is expected to continue through the second half of the year, Stefan Oelrich, head of Bayer’s pharma division, said on a Tuesday conference call.
The Eylea story is “still being written,” CEO Bill Anderson added. Bayer's Eylea sales grew 8% in the quarter to 843 million euros ($921 million), led by Japan and China, according to a company presentation (PDF). Regeneron markets the drug in the United States.
Xarelto, meanwhile, will tell a different story over the next six months, with more overseas generic launches expected to bite the drug's sales. That’s ahead of upcoming price caps for the Johnson & Johnson-partnered heart med as a result of its spot on the list of drugs up for Medicare price negotiations through the Inflation Reduction Act.
As Xarelto falters, the company expects rising prostate cancer med Nubeqa to pick up some of the slack. With an expanding prescriber base, strengthened by “higher repeats” in the existing base, the drug is on its way to becoming a standard-of-care therapy, Oelrich added. Bayer counts Nubeqa as one of its launch products that can help compensate for Xarelto losses.
Bayer has previously targeted over 3 billion euros in peak Nubeqa sales. Analysts at ODDO BHF expect the med to cross the blockbuster threshold this year, with a 1.3 billion euro ($1.4 billion) 2024 forecast that the analysts figure Nubeqa is “on track” to meet, according to a note to clients.
Also included in Bayer's launch group is Kerendia, which debuted in 2021 as a chronic kidney disease associated with type 2 diabetes treatment. Kerendia sales rose 72.9% during the quarter, and Bayer anticipates more growth ahead. Next, the company hopes to expand the drug’s label into heart failure, supported by a recent phase 3 win.
Still, that’s not to say that Xarelto’s ongoing declines won’t make a mark on the company’s overall performance. The second half of the year is slated for “somewhat deteriorating margins,” Oelrich noted.
Outside of newer launches, Bayer’s women’s health franchise saw an 11% jump in sales for intrauterine device (IUD) Mirena. That product has been on the market since 2000 but is a contraceptive that is “evidenced to be one of the most effective out there,” Oelrich said. With that considered, it's no surprise to Bayer that the product is “coming back,” he added.