Bayer CropScience Accelerates Expansion of Biotech and Seed Business with Investments of EUR 3.5 BLN through 2018    

By Mabel Tian   
Bayer CropScience is accelerating the extension of its biotech and seed business. Following a record year in 2008, the company is continuing its strategy of expansion, aiming systematically to expand its fast-growing business in seed and plant traits in the coming years. The intention is to more than triple sales in the BioScience segment to around EUR 1.4 billion by 2018. "In this context the company is planning to invest some EUR 3.5 billion in research and infrastructure for its biotech and seed business between now and 2018. This figure does not include possible acquisitions," said Professor Dr. Dr. h.c. Friedrich Berschauer, Chairman of Bayer CropScience AG's Board of Management.
   With this in mind of "innovative and sustainable solutions all the way from sowing to harvesting", Bayer CropScience is seeking to further strengthen its role as a leading supplier of innovative technologies in all business segments, to grow its portfolio strategically, and to expand its business sustainably in rapidly growing emerging markets. The growth strategy revolves around three elements: chemical crop protection, plant traits, and high-quality seed.
   In the crop protection business segment, the company has set itself the goal of bringing to market between 2008 and 2012 ten new crop protection active substances with a combined peak sales potential in excess of EUR 1.25 billion - previously the target sales figure was above EUR 1 billion. Following the successful launch of the insecticide spirotetramat and the herbicide pyrasulfotole in 2008, the company has achieved a further milestone this year with the grant of regulatory approval for the new herbicide thiencarbazone-methyl in combination with the safener cyprosulfamide in first countries. Three fungicides - fluopyram, bixafen and isotianil - are scheduled for launch in 2010 and 2011. In addition, three further candidates, among them a biological pest-control product, are at an advanced stage of development.
   In the BioScience segment, Bayer CropScience's intention is to expand the portfolio on a regional basis in the coming years and to include further crops. The company has begun research into improved cereal varieties. The objective here, as with other crops, is to increase yields and to make plants more resistant to adverse weather conditions. The company's research activities are also focusing increasingly on soybeans.
   Bayer CropScience is currently investing the equivalent of roughly 27% of sales in the development of new BioScience products.
   BioScience business unit's goal is to grow roughly twice as fast as the market in the next few years. Sales are planned to increase from EUR 452 million (2008) to around EUR 1.4 billion by 2018. Bayer CropScience is seeking to offer its solutions to as many farmers as possible worldwide by out-licensing its technologies to other companies. The four agreements that have been concluded to date represent a cumulative potential for license fees in excess of EUR 500 million.
   Currency-adjusted sales of the Bayer subgroup grew 4.8% to EUR 3 972 million (previous year: EUR 3 782 million) in the first six months of 2009 despite unfavorable weather conditions in some of the major growing regions. Growth in North America, Europe and Asia was driven by products based on new active ingredients. Sales of fungicides declined in practically all regions owing to a lower burden of disease.