Global big pharma Bayer, with 160 years of history, is confronting the patent cliff for its key medicines head-on with a new pipeline of drug candidates in development.
With the prostate cancer drug Nubeqa and the heart and kidney disease drug Kerendia supporting earnings growth, the company plans to diversify its pipeline with next-generation therapeutic modalities, including cell and gene therapies for Parkinson's disease, to accelerate mid- to long-term growth.
Stefan Oelrich, head of Bayer's pharmaceuticals division, told ChosunBiz at the 44th JPMorgan Healthcare Conference (JPMHC 2026), held in San Francisco from the 12th to the 16th (local time), "2025 was an inflection point of growth in which we secured approvals for five core products," adding, "Bayer has its strongest pipeline in years."
He said, "We have as many as 31 projects in the clinical stage, including cell and gene therapies," and noted, "By diversifying modalities, we are developing a varied pipeline of new drugs that will drive Bayer's sustained growth."
Founded in Germany in 1863, Bayer is a global life sciences company known as the developer of the analgesic and antipyretic Aspirin. With pharmaceuticals, agriculture, and consumer health as its pillars, it posted about 46.6 billion euros (about 79 trillion won) in annual revenue in 2024. Of that, pharmaceutical revenue was 18.081 billion euros (about 31 trillion won).
◇ Beyond the patent cliff, focusing on next-generation drugs
Bayer faces challenges from the patent expirations of the blood clot treatment Xarelto and the macular degeneration treatment Eylea. The emergence of generics and biosimilars threatens big pharma that holds original drugs with the loss of market share.
In particular, the industry has recently focused on strategy after Eylea, which has annual revenue of 13 trillion won. Eylea was co-developed and successfully commercialized by U.S. biotech Regeneron and Bayer. Bayer holds global rights outside the United States. In the U.S., the composition-of-matter patent expired in May 2024, and the formulation patent is set to expire in 2027.
Korean corporations such as Samsung Epis Holdings' subsidiary Samsung Bioepis, Celltrion, Sam Chun Dang Pharm, and Alteogen are racing to develop Eylea biosimilars and aim to launch them in the global market.
Bayer chose the straightforward approach of continuing to invest in research and development (R&D) to secure next-generation growth engines. In 2024, it invested about 13% of annual sales in R&D.
Oelrich said, "We are successfully offsetting the revenue gap after the patent expirations of Xarelto and Eylea with follow-on products," adding, "Nubeqa and Kerendia are already powering strong growth." In Bayer's 2024 results, Nubeqa sales grew 78% year over year, and Kerendia sales rose about 74%.
He added, "The next wave of commercialization will be led by the ATTR-CM cardiomyopathy rare disease treatment Beyonttra, the menopause symptom treatment Lynkuet, and the anticoagulant asundexian, which, upon approval, will have an indication for stroke prevention."
Since CEO Bill Anderson took office, Bayer has introduced the Dynamic Shared Ownership (DSO) operating model and reshaped the organization. It is a system that streamlines the organization and delegates decision-making authority to the field.
Oelrich said, "Through the DSO operating approach, the rare disease treatment 'Beyonttra' took less than two years from license-in to launch in Germany, and within a few months of launch it captured about 50% of new prescriptions."
◇ "CGT first mover"… "Reaching the tipping point in conquering Parkinson's disease"
A key area Bayer is prioritizing is cell and gene therapy (CGT). In particular, the Parkinson's disease cell therapy Bemdaneprocel has entered phase 3 clinical trials, drawing intense industry attention.
Oelrich said, "Bemdaneprocel is a candidate with very high first-in-market potential." He added, "Bayer is the first company to advance both cell and gene therapies for Parkinson's disease into development," and said, "Our strategy is clearly delivering results."
In 2019, Bayer acquired BlueRock Therapeutics, a stem cell therapy developer, followed in 2020 by AskBio, which has a gene therapy pipeline. Through these companies, Bayer built a dual strategy to develop both cell therapy and gene therapy for Parkinson's disease at the same time.
On the target timing for Bemdaneprocel's commercialization, Oelrich said, "It is still too early to mention a specific commercialization timeline." He added, "However, Bayer already has a global supply chain and state-of-the-art manufacturing facilities in place, so once approval is granted, we are prepared to supply the market swiftly."
He cited Bayer's "end-to-end" capabilities, spanning research, development, manufacturing, and distribution, as a competitive edge. Oelrich said, "We are combining the scientific expertise accumulated through AskBio and BlueRock Therapeutics with Bayer's global scale and advanced manufacturing infrastructure."
Bayer is sticking to a "smart deal" strategy of investing based on data to reduce risk instead of large M&A. Oelrich said, "By engaging from the early stages and co-developing the asset, we can reduce risk while increasing the likelihood of long-term success."
Last year, Bayer acquired Tavros Therapeutics. On this, Oelrich said, "It was our first acquisition under an 'arms-length' model, in which the research organization is not absorbed into headquarters but operates independently."
He also expressed interest in partnering with Korean corporations that have innovative technologies. Oelrich said, "We do not currently have an R&D partnership with a Korean bio company, but we are always looking for innovative partners, including in Korea," adding, "We are particularly interested in oncology, CGT, and digital health."