Bayer AG's pharmaceutical division reports a projected 8% revenue increase in 2026, driven by new oncology and cardiovascular drug launches. The unit's chief executive emphasized operational improvements and R&D investments as key to restoring long-term growth momentum.
- Bayer's pharma division projected to grow 8% in 2026
- €1.4 billion reinvested in R&D since 2023
- Two new oncology drugs received conditional approval in EU and U.S.
- Pharma revenue to reach €17 billion in 2026
- Pharma margins expected to expand to 39% in 2026
- Berlin campus hosts over 1,200 R&D scientists
Bayer's pharmaceutical segment is on track for an 8% year-over-year revenue rise in 2026, according to internal forecasts shared by the business unit's leadership. The growth projections come as the company accelerates development of its pipeline in oncology and cardiovascular therapeutics, with three new drug candidates entering late-stage clinical trials by mid-2026. The Berlin-based pharmaceutical campus remains central to these efforts, housing over 1,200 R&D scientists and serving as the hub for global clinical operations in the division. The unit's chief executive described the current phase as a 'comeback story' following a period of stagnation in the mid-2020s, when internal restructuring and patent expirations dampened performance. Since 2023, Bayer has reinvested approximately €1.4 billion into its pharmaceutical R&D portfolio, focusing on targeted therapies and digital health integration. This strategic shift has already yielded tangible results, with two new treatments—BAY-4125 and BAY-3941—securing conditional approval in the EU and U.S. for specific cancer indications. Market analysts note the 8% forecast exceeds prior consensus estimates by 1.5 percentage points. Bayer's pharmaceutical division now accounts for 62% of the company's total revenue, up from 55% in 2023. The stock has responded positively, with shares rising 4.7% in early trading following the announcement. Investors are particularly attentive to the company’s ability to sustain innovation and manage regulatory hurdles across key markets, including the U.S., Germany, and Japan. The growth outlook is also linked to improved commercial execution, including expanded sales forces in emerging markets and enhanced distribution partnerships. Bayer's pharmaceutical unit is expected to generate over €17 billion in revenue in 2026, with margins expanding to 39%—a significant improvement from 33% in the previous year. These developments underscore a broader corporate recovery effort tied to disciplined investment and a repositioned product portfolio.