Bayer aligns organization with Life Science businesses

Following the economic and legal separation of Covestro, Bayer is charting the course for its successful development as a Life Science company. On Friday, the Supervisory Board approved the reorganization proposed by the Board of Management.

From Jan 1, the company's business will be managed by three divisions: Pharmaceuticals, Consumer Health and Crop Science. The present structure of a strategic management holding company and operational subgroups will be replaced by an integrated organization under the umbrella of the strong Bayer brand.

"The aim of the new organization is to provide the best-possible support to Bayer's strategy as a leading Life Science company and to put ourselves in an even stronger position vis-à-vis our competitors. We can achieve this by further improving our innovation strength, sharpening our customer focus and strengthening business process excellence," said Marijn Dekkers, Chairman of the Board of Management of Bayer AG.

In the new organization, the Board of Management of Bayer AG also will hold overall responsibility for business operations. For this reason, the Supervisory Board resolved to appoint the heads of the divisions - Dieter Weinand (Pharmaceuticals), Erica Mann (Consumer Health) and Liam Condon (Crop Science) - to the Board of Management, effective January 1.

On the same date, Hartmut Klusik will also join the Board of Management of Bayer AG as the new Labor Director and Board member responsible for Human Resources, Technology and Sustainability. He will succeed Michael K?nig, who has requested that his contract not be extended.

"In recent years, Bayer has continued developing its portfolio with a significant focus on the Life Sciences. The company's very strong position at this time enables it to concentrate exclusively on these businesses. The logical conclusion of this is greater integration of the organization," said Werner Wenning, Chairman of the Supervisory Board of Bayer AG.

Concerning the changes on the Board of Management, Wenning added: "We are convinced that the greater integration of strategic and operational roles will take Bayer forward and we have expanded the roles of the Board of Management members accordingly. We wish the Board of Management in its new constellation every success. It is with regret that we say farewell to Michael K?nig. We would like to thank him most sincerely for his valuable contribution and wish him all the best for the future."

As part of the reorganization, the Bayer HealthCare subgroup will be dissolved. The Radiology business will be assigned to the Pharmaceuticals Division. Consumer Health will comprise the present Consumer Care Division. The Bayer Crop Science subgroup will become the Crop Science Division. As a business unit, Animal Health will report directly to Liam Condon.

The divisions are to focus on core competencies close to their businesses - research and development, production, and sales & marketing. They will be supported by integrated functions such as Human Resources and Procurement, and by global services.