The HealthCare segment at Bayer (BAYRY) has been boosted by the sales of new products like Xarelto (anticoagulant), Eylea (eye drug), Xofigo (oncology) and Stivarga (oncology) in the last few quarters. The segment recorded revenues of €4.7 billion in the third quarter of 2013, an improvement of 4.3% from the year-ago quarter.
Eylea (VEGF trap-eye) is currently approved for treating patients suffering from visual impairment due to macular edema following central retinal vein occlusion (CRVO) and for the treatment of patients suffering from neovascular age-related macular degeneration (wet AMD). The drug is also being developed for other indications. Earlier in the week, Bayer announced positive data from the phase III MYRROR study on Eylea, where the drug is being developed for the treatment of myopic choroidal neovascularization (mCNV).
The results from the MYRROR study were presented at the American Academy of ophthalmology conference. Data revealed that patients treated with Eylea showed a mean improvement in best-corrected visual acuity (BCVA) of 12.1 letters from baseline compared to 2 letters in patients receiving sham injections at week 24. The improvement was maintained at the end of week 48 as well.
Bayer intends to file for regulatory approval of Eylea for this indication in Asia by year end.
Bayer has a collaboration agreement with Regeneron Pharmaceuticals Inc. (REGN) for the global development of Eylea. Per the terms of the agreement, Regeneron owns the entire U.S. rights pertaining to the eye drug. Bayer is however responsible for marketing Eylea in ex-U.S. markets. The profit earned from the sales of Eylea in those markets will be shared equally by the companies. However, in Japan, Regeneron will receive royalties on Eylea’s net sales.
We are encouraged by the company’s progress with Eylea. The company recorded Eylea sales of €85 million for the third quarter of 2013. Successful label expansion of the drug will further boost its sales.
Bayer, a large cap pharma company, presently carries a Zacks Rank #2 (Buy). Another large-cap stock, Allergan Inc. (AGN), also holds a comparable rank. Meanwhile, Actelion Ltd. (ALIOF) currently looks more attractive with a Zacks Rank #1 (Strong Buy).
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