German pharmaceuticals and chemicals group Bayer AG said Tuesday it is targeting increased sales and earnings growth over the next few years at its drug and crop-science businesses, just days after announcing a planned $66 billion takeover of US seed company Monsanto Co. "We are optimistic about Bayer's medium-term development and have therefore set ambitious aspirations," said Chief Executive Werner Baumann, ahead of an event for investors and analysts in Cologne. 

Baumann said the company expected "significant" improvement in sales and profitability at the pharmaceuticals division, driven by recently launched blockbuster drugs. The company now sees a combined peak annual sales potential for those products, including blood thinner Xarelto, of more than EUR10 billion ($11 billion), up from a previous forecast of EUR7.5 billion.

At the crop-science division, Baumann said Bayer was targeting a clean earnings margin of more than 30% three years after the closing of the Monsanto acquisition, compared with a pro forma margin of 27% in 2015. Both companies have said they expect the deal to close by the end of 2017.

Source : QNA