20 September 2012 13:10 [Source: ICIS news]
LONDON (ICIS)--Bayer sees at least €4bn ($5bn) sales potential in new products being launched between 2011 and 2016 from its CropScience businesses, the Germany-based pharmaceuticals, crop protection and materials group said on Thursday.
"Bayer CropScience is on track for above market growth," CEO Sandra Peterson said at the company’s annual press conference.To back this growth, Bayer CropSceince said it will spend €5bn in research and development (R&D) between 2011 and 2016 and €2bn on production and seed processing expansions. Peterson added Bayer was responding to global demand for differentiated crop solutions.
It expects the share of its seeds business, formerly called bioscience, in the CropScience sales total, to rise to 20% by 2016, from 11% in 2011. Bayer bioscience sales in 2011 were up 19% year on year at €820m, while its CropScience segment reported a 6.2% rise in sales to €7.3bn. Bayer Group sales in 2011 were €36.5bn.
The company has sought to rejuvenate its crop protection business, get closer to the customer and refocus innovation as it extends is seeds business.
"We have streamlined our portfolio and rebalanced the mix while accelerating the potential of new technologies. These all play a significant role in how we strive to propel farming’s future," Peterson said.
Bayer CropScience’s almost $500m acquisition of US biological pest control company AgraQuest, which was completed in August, secures its foothold in the biologics market, which is expected to triple to a value of almost $4bn by 2020, the company said..
Peterson is due to leave Bayer CropSceince at the end of November 2012, Bayer said earlier this month.
($1 = €0.77)
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