Focus on Innovation

Overview

  • Excellence in research and development
  • Groundbreaking technologies in the Life Sciences This term describes Bayer’s activities in health care and agriculture and comprises the Bayer Group excluding its legally independent subsidiary Covestro. It refers to the businesses of the Pharmaceuticals, Consumer Health and Crop Science divisions and the Animal Health business unit.
  • Global open innovation network
Innovation (icon)Innovation (icon)

Innovation is a cornerstone of our mission “Science For A Better Life” and a core element of our strategy. We define innovations as new solutions that generate added value for our customers and society. Our activities focus on innovative products based on our strong research and development competencies. They are accompanied by process, service and business model innovation.

With our innovative solutions, we are responding to the global challenges in medical care and the need to safeguard an adequate food supply. Here we focus on three key elements: excellence in research and development, the application of groundbreaking technologies, and open innovation.

Group target 2016:

increase in R&D investment to €4.5 billion

Excellence in research and development

The success of our company is based on excellence in research and development (R&D). The know-how and skills of our employees are our most valuable resource in this endeavor. We develop new molecules and technologies in the research-intensive fields of medicine and modern agriculture and invest continuously in research and development projects.

We maintain a global network of research and development locations, where more than 15,000 scientists are employed. The focus of the research projects is determined by the R&D strategies of our segments. In 2016, we increased our research and development investment by 9.8% (Fx adj.) to €4,666 million. We plan to invest around €4.8 billion in research and development in 2017.

Research and Development Expenses in 2016

 

 

R&D expenses

 

R&D expenses before special items

 

Share of R&D expenses

 

R&D expenses before special items

 

R&D employees

 

 

2015

2016

 

2015

2016

 

2015

2016

 

2015

2016

 

2015

2016

 

 

€ million

€ million

 

€ million

€ million

 

%

%

 

% of sales

% of sales

 

FTE

FTE

2015 figures restated

Pharmaceuticals

 

2,450

2,787

 

2,402

2,736

 

57.3

59.7

 

15.7

16.7

 

8,003

7,934

Consumer Health

 

250

259

 

232

234

 

5.8

5.6

 

3.8

3.9

 

347

331

Crop Science

 

1,082

1,164

 

1,082

1,156

 

25.3

24.9

 

10.7

11.7

 

5,073

5,631

Animal Health

 

134

140

 

134

140

 

3.1

3.0

 

9.0

9.2

 

285

308

Reconciliation

 

96

55

 

96

55

 

2.2

1.2

 

8.7

5.2

 

40

9

Life Sciences

 

4,012

4,405

 

3,946

4,321

 

93.7

94.4

 

11.6

12.4

 

13,748

14,213

Covestro

 

262

261

 

261

261

 

6.3

5.6

 

2.2

2.2

 

1,005

1,016

Group

 

4,274

4,666

 

4,207

4,582

 

100

100

 

9.1

9.8

 

14,753

15,229

Patents protect Bayer’s intellectual property

Globally reliable protection of intellectual property rights is particularly relevant for an innovation company like Bayer. We therefore endeavor to obtain patent protection for our products and technologies in the major markets depending on the legal framework. At the end of 2016, we owned approximately 50,800 valid patent applications and patents relating to some 5,000 protected inventions worldwide.

Online Annex: A 1.3-1

limited assurance

Patent protection is essential

Patent terms vary according to the laws of the country granting the patent. In view of the high investment required for product research and development, the European Union (E.U.) member states, the United States, Japan and some other countries extend patent terms or issue supplementary protection certificates to compensate for the shortening of the effective patent protection period due to regulatory approval processes for new drugs.

The term of a patent is normally 20 years. Since it takes an average of 12 years to develop a new medicine, only eight years of patent protection generally remain following the product’s approval. In most cases it would be impossible to cover the substantial costs incurred in the research and development of innovative medicines or of new indications or dosage forms for existing drugs without this protection. We are therefore committed worldwide to protecting both the international patent system and our own intellectual property. The following table shows the expiration dates for the Bayer Group’s significant patents.

Pharmaceuticals Patent Expiration Dates

 

 

Market

 

 

Ger­many

 

France

 

U.K.

 

Italy

 

Spain

 

Japan

 

China

 

Switz­erland

 

Brazil

 

U.S.A.

 

Canada

a

Current expiration date; patent term extension applied for

b

Patent application pending

c

Patent term revised

d

Application-specific term extension(s)

e

Patent term extension granted

f

Notice of allowance received

Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adempas™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

2028e

 

2028

 

2023a

 

2028

 

2028

 

2027

 

2023

 

2028

 

2023b

 

2023a

 

2023

Production process / intermediate

 

2030

 

2030

 

2030

 

2030

 

2030

 

2030

 

2030

 

2030

 

2030b

 

2030

 

2030b

Eylea™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

2020a

 

2025

 

2020a

 

2025

 

2025

 

2021–2023d

 

2020

 

2025

 

2020b

 

 

2020

Formulation

 

2027

 

2027

 

2027

 

2027

 

2027

 

2028–2029d

 

2027b

 

2027

 

2027b

 

 

2027

Kogenate™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

 

 

 

 

 

 

 

 

 

 

2021

Formulation

 

2017

 

2017

 

2017

 

2017

 

2017

 

2020

 

2017

 

2017

 

2020

 

2016

 

2017

Kovaltry™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

 

 

 

 

 

 

 

 

 

 

2021

Formulation

 

2017

 

2017

 

2017

 

2017

 

2017

 

2020

 

2017

 

2017

 

2020

 

2016

 

2017

Production process

 

2018

 

2018

 

2018

 

2018

 

2018

 

2018a

 

2018

 

2018

 

2023

 

2017

 

2018

Mirena™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inserter

 

2029

 

2029

 

2029

 

2029

 

2029

 

2029

 

2029

 

2029

 

2029b

 

2029b

 

2029

Nexavar™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

2021

 

2021

 

2021

 

2021

 

2021

 

2021–2025d

 

2020

 

2021

 

2025

 

2020

 

2020

Salt form

 

2022

 

2022

 

2022

 

2022

 

2022

 

 

 

2022

 

 

 

Polymorph

 

2025

 

2025

 

2025

 

2025

 

2025

 

2025–2026d

 

2025

 

2025

 

2025b

 

2027

 

2025

Formulation

 

2026

 

2026

 

2026

 

2026

 

2026

 

2026–2027d

 

2026

 

2026

 

2026b

 

2026f

 

2026

Stivarga™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

2028

 

2028

 

2024a

 

2028

 

2028

 

2026d

 

2024

 

2028

 

2024b

 

2031

 

2024

Formulation

 

2025

 

2025

 

2025

 

2025

 

2025

 

2026d

 

2025

 

2025

 

2025b

 

2031c

 

2025

Production process

 

2031

 

2031

 

2031

 

2031

 

2031

 

2031

 

2031

 

2031

 

2031b

 

2031

 

2031

Xarelto™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

2023

 

2023

 

2023

 

2023

 

2023

 

2022–2025d

 

2020

 

2023

 

2022

 

2024e

 

2020

Formulation

 

2024

 

2024

 

2024

 

2024

 

2024

 

2025–2028d

 

2024

 

2024

 

2024b

 

2024

 

2024

Xofigo™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Use

 

2024

 

2024

 

2024

 

2024

 

2024

 

2019a

 

2019

 

2024

 

 

2020a

 

2019

Production process

 

2031

 

2031

 

2031

 

2031

 

2031

 

2031

 

2031

 

2031

 

2031b

 

2031

 

2031b

Groundbreaking technologies in the Life Sciences

With our strategic innovation unit, the Bayer Lifescience Center (BLSC), we focus on new groundbreaking technologies. In May 2016, Bayer and ERS Genomics, Ireland, signed an agreement giving Bayer access to ERS’s CRISPR-Cas9 genome-editing patents. The agreement granted Bayer rights for defined research applications of this technology in selected strategic areas. In August 2016, Casebia Therapeutics, a company established by Bayer and CRISPR Therapeutics in March 2016, launched operations in Cambridge, Massachusetts, and San Francisco, California, United States. The goal of Casebia Therapeutics is to develop new, trend-setting therapeutics to treat blood diseases, blindness and congenital heart disease. In December 2016, Bayer and Versant Ventures established the company BlueRock Therapeutics, which will be active in the area of regenerative medicine. The company plans to develop highly efficient therapies based on induced pluripotent stem cells (iPSCs) to cure various cardiovascular diseases, neurological disorders and diseases of the central nervous system.

Global open innovation network

Partnerships are integral to our innovation strategy. That is why we work within a network of alliances with start-ups, academic institutes, industry, suppliers and other partners. Our open innovation network spans all parts of the company along the value chain. Our open innovation portal offers a platform for collaborations in all parts of the company. We also invest in venture capital funds that finance life science start-up companies, among other projects.

Online Annex: A 1.3-2

limited assurance

Scientists from Bayer are involved in constant dialogue with renowned research institutes and support partnership projects in the public and private sectors. In 2016, public funding worth more than €12 million was spent on more than 50 projects worldwide. This is equivalent to roughly 0.3% of our annual R&D expenses. We also participate in industry associations, assume professorships at universities worldwide and regularly invite scientists, university and school students to attend events such as symposiums on health topics or research days for school students. We view this as an investment in our own future.