* 5 top new drugs combined sales to be 2.8 bln eur in 2014
* Says MaterialScience unit to earn cost of capital by 2016
* Shares indicated 0.4 pct lower vs 0.7 pct fall for Dax
FRANKFURT, March 12 Bayer said newly
launched drugs would help shore up the diversified group's
pharmaceuticals sales by an average 8 percent per year until
2016, adjusted for currency and portfolio effects.
Germany's largest drugmaker last month boosted its estimate
of the peak sales potential of its five most important new drugs
to at least 7.5 billion euros ($10.4 billion), from more than
5.5 billion euros previously.
It said on Wednesday that combined sales of the five new
drugs - anti-clotting drug Xarelto, eye drug Eylea, cancer drugs
Stivarga and Xofigo as well as lung drug Adempas - would be
about 2.8 billion euros in 2014, up from 1.5 billion euros in
Bayer's bulging drugs pipeline has given its shares a 20
percent gain over the last 12 months, outperforming the 17
percent increase for the STOXX Europe 600 Health Care.
Bayer, which is making presentations to analysts and
investors at its Leverkusen headquarters on Wednesday, said the
lagging MaterialScience unit would earn its cost of capital by
2016, later than a previous target for 2015.
The division is the world's largest maker of transparent
plastics used in blu-ray disks and car head lights. It is also
among the market leaders in chemicals for insulation and padding
"At MaterialScience, we're cautiously optimistic for the
future despite the difficult market environment we encountered
last year," said Chief Executive Marijn Dekkers.
MaterialScience, suffering from global production
overcapacity, is not earning its cost of capital. This implies
the unit's hypothetical standalone market value would decline.
The unit's return on capital was just 5.5 pct last year,
compared to a cost of capital was 6.9 pct.