Divisions of Bayer HealthCare

	Management	Based in
Animal Health	Lykele van der Broek	Monheim, Germany
Bayer Schering Pharma	Arthur J. Higgins	Berlin, Germany
Consumer Care	Gary S. Balkema	Morristown, USA
Diabetes Care	Sandra E. Peterson	Tarrytown, New York, USA

• Link: More information about the four divisions of Bayer HealthCare

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Executive Committee

Chairman:  Arthur J. Higgins

Members of the Executive Committee

• Gary S. Balkema
• Werner Baumann
• Lykele van der Broek
• Prof. Dr. Andreas Busch
• Dr. Hartmut Klusik
• Dr. Ulrich Köstlin
• Sandra E. Peterson
• Dr. Kemal Malik
• Dr. Gunnar Riemann

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Sales 2007

Sales of the HealthCare subgroup grew by 26.3 percent in 2007, to €14,807 million. The acquired business of Schering AG, Berlin, Germany, is included in this fi gure on a fullyear basis (2006: June 23 – December 31). Adjusted for currency and portfolio effects, sales climbed by 7.3 percent. The increase was due to the positive business performance of both segments.

	2007	2006	Change
	€ million	€ million	%
Bayer HealthCare	14,807	11,724	26
- Division Animal Health	956	905	5.6
- Division Consumer Care	2,634	2,531	7.8
- Division Diabetes Care	950	810	17.5
- Division Bayer Schering Pharma*	10,267	7,478	37.3

*The aquired business of Schering AG, Berlin, Germany, is included in this figure on a full-year basis (2006: June 23 -December 31).

• Link: Our 20 best-selling products in 2007

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Performance 2007

Sales of our Pharmaceuticals segment climbed by 37.3 percent in 2007, to 10,267 million (2006: 7,478 million). This fi gure contains 5,921 million (2006: €3,082 million pro-rated) in sales of the Schering business. Adjusted for portfolio and currency changes, sales were up by 5.7 percent.

In the Consumer Health segment, business expanded by 6.9 percent in 2007, to 4,540 million (2006: 4,246 million). Adjusted for currency and portfolio changes, sales were up by 10.3 percent. We registered above-market growth in all three divisions.

The Consumer Care Division grew sales by 4.1 percent to 2,634 million (2006: 2,531 million). This fi gure takes into account our fi rst sales of the calcium dietary supplement Citracal®, acquired in the fourth quarter from Mission Pharmacal Company of the United States. Currency- and portfolio-adjusted sales improved by 7.8 percent. The highest growth rates were posted by Berocca® (currency-adjusted: +16.8 percent), Canesten® (currency-adjusted: +15.4 percent) and Aleve® (currency-adjusted: +13.9 percent).

Sales of the Diabetes Care Division came in at 950 million (2006: 810 million), with a currency- and portfolio-adjusted increase of 17.5 percent. This gratifying trend was chiefl y attributable to the successful marketing, particularly in North America and Europe, of our Ascensia® Contour® and Ascensia® Breeze® blood glucose monitoring systems, which replace the Elite® systems of the Ascensia® product family.

Sales of the Animal Health Division increased by 5.6 percent to 956 million (2006: 905 million), or by 10.6 percent when adjusted for currency effects. The performance of our Advantage® product line was particularly gratifying, with currency-adjusted sales rising by 20.8 percent. In October 2007, the European Medicines Agency (emea) expanded the registration for the canine anti-parasitic Advocate®.

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Research & Development 2007

In 2007 we invested 1,700 million (2006: 1,426 million) in R&D in the Pharmaceuticals and Consumer Health segments to lay the foundations for the introduction of further innovative products in the subgroup’s expanding markets. This represented 65.9 percent of the Bayer Group’s entire r&d expenditures and was equivalent to 11.5 percent of sales.

• Link: More information about Research & Development

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