Bayer Brings External Innovation Inside, With Guardrails

By Ben Comer, Chief Editor, Life Science Leader

In 2018, on the heels of closing its $63 billion Monsanto acquisition, Bayer AG announced an organization-wide restructuring aimed at cutting costs and creating efficiencies that would ultimately be used to support the company’s core life sciences business. The strategy involved selling off its animal health business and certain consumer product brands, in addition to selling its prescription dermatology product portfolio and divesting further in materials science spinoff Covestro AG. “Through the end of 2022 alone, we aim to invest a total of around 35 billion euros in our company’s future, with research and development accounting for over two-thirds of this figure and capital expenditures for just under one-third,” said Werner Baumann, CEO of Bayer since 2016, in a 2018 statement on the restructure.