Nubeka and Kerendia, the main growth drivers for Bayer’s pharmaceutical division, are performing even better than the company expected, and the momentum is expected to continue in 2026. But that won’t translate into overall growth for Bayer’s pharmaceutical business this year, as the two contraction drivers, Xarelto and Eylea, are working in opposite directions.
Bayer Pharmaceuticals President Stefan Erlich said on a quarterly conference call that this year will be the last year of the sector’s “recovery period” and prepare it for growth in 2027.
In a sense, Bayer’s pharmaceutical business is a company in microcosm. A recovery is finally in sight as the German conglomerate absorbs huge legal costs related to its disastrous Monsanto takeover a decade ago and eyes a $7.25 billion settlement in the Roundup lawsuit.
“We expect free cash flow to be negative this year due to litigation-related payments,” CEO Bill Anderson said. “This outlook is emblematic of the company’s current strategic position. While there are strong signs of progress, we remain committed to a comprehensive turnaround.”
Sales of prostate cancer drug Nubeqa rose 57% to €2.4 billion ($2.7 billion) in 2025 (PDF). Meanwhile, kidney disease drug Kerendia achieved sales of 829 million euros ($936 million) in 2025, an increase of 79%, with year-over-year growth of 93% in the fourth quarter.
“With strong and sustained sales of Nubeca and Kerendia, we are poised for the next wave of growth into the next decade,” Orrich said, noting the launch of the cardiomyopathy drug Byontra in partnership with BridgeBio, the recently approved menopause drug Linket, and the potential for the investigational stroke drug Asundexian.
Meanwhile, sales of eye disease drug Eylea fell 6% last year to 3.1 billion euros ($3.51 billion), with fourth-quarter sales down 16% from a year earlier. Orlich cited increased pricing pressure from the entry of biosimilars into the market, partially offset by volume growth, including increased sales of 8mg long-acting Eylea.
“The entry of biosimilars is much more of a price decline than a volume decline for us, and it will be very difficult for us to overcome this,” Orlich said.
Sales of the anticoagulant Xarelto, which continues to see generic encroachment, fell 33% to 2.34 billion euros ($2.6 billion) in 2025. The drug’s performance also trended negatively in the fourth quarter, declining 39% year-over-year in the same period.
Bayer expects sales of both aging products to decline even more rapidly in 2026, with Eyrie’s sales expected to decline by 20% to 25% and Xarelto’s sales to decline by 35% to 40%.
“We expect our underlying business to contract slightly in 2026,” Orrich said, adding that Bayer expects sales to be higher in the second half of the year than in the first half and the pharmaceutical division to deliver mid-single-digit growth in 2027.
In 2025, sales at Bayer’s pharmaceutical division fell by 2% to 17.83 billion euros ($20.1 billion). For the fourth quarter, pharmaceutical sales fell 4% to 4.48 billion euros ($5.1 billion).
Bayer’s consumer health division exhibited a similar quarterly trend, but to a greater extent, with annual sales down 1% to 5.8 billion euros ($6.5 billion) and 7% in the fourth quarter to 1.46 billion euros ($1.6 billion).
