Bayer Focuses on Strengthening its Global Pharmaceuticals Production Network

Bayer, the German global enterprise with core competencies in the life science fields of health care and nutrition plans to invest around 2 billion euros ($2.23 billion) to bolster the production of biotechnology drugs as well as cell and gene therapies over the next three years. A significant part of these investments will be made for enhanced capacities and further strengthening the company’s cell and gene therapy production as well as in the expansion of its manufacturing site in Berkeley, USA.

The company also plans to invest in new technologies, automation, and digitalization for strengthening the production network of its pharmaceutical division. This is to ensure sustainable competitiveness and support the transformation of its pharmaceutical business based on breakthrough innovation delivering long-term, sustainable business growth.

Germany to Remain the Strategic Manufacturing Location

Bayer plans to invest in its core manufacturing plants and strengthen their operational responsibilities to sustainably support the implementation of the company’s strategy for its pharmaceuticals business. Germany will remain an important strategic manufacturing location for the company. The company’s Supply Center in Berlin will be transformed into a Center of Excellence for parenteral, and the Supply Center in Leverkusen into a Center of Excellence for non-hormonal solids. 

The Supply Center Bergkamen will become a Center of Excellence for contrast media and hormone products while expanding capacities for therapeutics. Major investments will also be made in the Supply Center in Wuppertal which is focused on launching production and new production technologies. In these sites, the company will invest around 1 billion Euro over the next three years.

Disinvestment: A Key Aspect of Building Competitiveness

Whilst Bayer is strengthening its production network through these investments, it is analyzing in parallel which manufacturing activities might not be of strategic focus any longer. For example, the company has already divested its production plant in Karachi, Pakistan. To continue strengthening the competitiveness of its manufacturing capabilities by focusing on core activities and technologies the company’s manufacturing plant in São Paulo Cancioneiro, Brazil, will be transferred to a new operator. In addition, Bayer is planning to transfer parts of the infrastructure and services at the German sites in Bergkamen, Wuppertal and Berlin to external partners.

Author

Arvind C. Shekhar