At the company’s March 5 financial news conference, Bayer CEO Bill Anderson outlined the company’s four priorities for the next two to three years:
- building a strong Pharmaceuticals pipeline
- addressing litigation
- reducing debt
- continuing to implement its radical new operating model, Dynamic Shared Ownership (DSO), to improve performance
“We are a high-impact, mission-driven, life-science company with three strong businesses, but we have four challenges that urgently must be addressed,” said Anderson.
Specific to DSO, the company forecasts savings of more than $2.1 billion in annual organizational costs. DSO aims to bring the company’s structure closer to its customer and reduce bureaucracy while accelerating decision-making. Read more here: Bayer’s New Business Model: Magnitude of Change
The Crop Science division aims to launch “10 blockbusters” into the market over the next 10 years.
Regarding its legal risks and their related uncertainty, Bayer aims to reduce those by “updating its strategy and pursuing new approaches both inside and outside the courtroom.”
Additionally, the company plans address its debt and move toward an A rating with profitable growth and an amended dividend policy, which includes the legally required minimum three year pay out.
When questioned about any potential break-up of the Bayer divisions, Anderson said, “Our answer is ‘not now’ – and this shouldn’t be misunderstood as ‘never.’ Of course, we will keep an open mind.”
