Introduction
Bayer shows promising progress with its prostate cancer drug Nubeqa (Darolutamid), which could reach a long-term revenue potential of over three billion euros. This drug is a key component of Bayer’s growth string, particularly in the Pharmaceuticals sector.
Background and Revenue Development
Nubeqa and Kerendia
In the first quarter of 2025, Nubeqa and Kerendia recorded significant revenue increases. The combined revenue of Nubeqa and Kerendia rose by 80 percent to a total of 680 million euros, mainly due to strong US performance.
Long-Term Potential
Nubeqa has the potential to generate over three billion euros in revenue in the long term. This could be particularly interesting for investors, as it could significantly enhance Bayer’s growth prospects.
Pharmaceuticals Segment
The revenue in the Pharmaceuticals segment increased by 4.1 percent in the first quarter of 2025 to 4.548 billion euros. This growth was driven by new products such as Nubeqa and Kerendia.
Challenges and Opportunities
Competition and Generics
Some of Bayer’s established products, such as Xarelto, are under pressure from generics in Europe and Japan. Revenue from Xarelto fell by 31 percent in the first quarter of 2025.
Geopolitical Uncertainties
Bayer continuously assesses the impact of geopolitical developments on its business forecast. Despite uncertainties, the company maintains its annual forecast.
Research and Development
Investments in research and development remain high, which is being offset by efficiency improvements and revenue growth.
Outlook
Bayer confirmed its currency-adjusted group forecast for 2025 and expects that revenue growth and the EBITDA margin will be at the upper end of the forecast range. Progress with Nubeqa and other new products is crucial for the company’s future growth.