Bayer Advances Two Drug Pipelines as Q1 Profit Doubles to €2.76B but Legal Costs Drain €2.3B in Cash

Bayer Q1 profit doubled to €2.76B; crop science up, but legal payouts hurt cash. Pharma bets on Asundexian (China) and Perfuse deal to offset Eylea decline.

Bayer is betting on a pair of late-stage pharmaceutical candidates to offset declining sales of its blockbuster eye drug Eylea, even as bumper earnings from the crop-science division are largely consumed by legal payouts. The German conglomerate has secured regulatory traction for its experimental stroke-prevention drug Asundexian in China and announced a $2.45 billion takeover of US biotech Perfuse Therapeutics – moves that together signal a strategic pivot toward ophthalmology and neurology.

The Leverkusen-based group started 2026 with a bang on the bottom line. Net profit more than doubled to €2.76 billion in the first quarter, while revenue climbed 4% on a currency-adjusted basis to €13.4 billion. The agricultural division Crop Science powered the advance, buoyed by a strong soybean season in North America and a licensing settlement with Corteva that added millions to the top line. Segment EBITDA expanded 17.9%, pushing the margin to 39.9%.

On the pharma side, Bayer is moving to fill a looming revenue gap. Eylea, its biggest ophthalmology product with sales of roughly €3.1 billion in the last twelve months, is losing ground to cheaper generics. In the first quarter, Eylea sales took a notable hit. The company’s answer is the full acquisition of Perfuse Therapeutics, a US developer of treatments for ischemic eye diseases. The deal includes an upfront payment of $300 million and up to $2.15 billion in development and regulatory milestones. The key asset is PER-001, an endothelin-receptor antagonist currently in Phase II trials for glaucoma and diabetic retinopathy. The transaction remains subject to antitrust clearance and Perfuse shareholder approval.

Meanwhile, Asundexian is advancing through regulatory channels. In April, China’s NMPA accepted its marketing application under an accelerated review process. The drug targets secondary stroke prevention following an ischemic attack, based on the Phase III OCEANIC-STROKE trial published in the New England Journal of Medicine. Asundexian reduced the risk of recurrent ischemic stroke by 26% compared with placebo, without increasing bleeding risk. The US FDA has already granted it Fast Track designation. Analysts peg the addressable market for secondary stroke prevention at $3 billion to $4 billion – significantly smaller than the atrial fibrillation market where Bayer previously failed with the same molecule.

Operational strength, however, is being undermined by legacy litigation. Free cash flow plunged to negative €2.32 billion in the first quarter, driven by roughly €2 billion in outflows for settlements related to glyphosate and PCB claims in the United States. Net financial debt rose to €32.5 billion, up from year-end levels, though the company notes it is still in a better position than a year ago.

Shares closed at €37.72 on Friday, a 65% gain over the past twelve months but still 23% below the 52-week high of €49.17. The stock is trading just above its 200-day moving average of €35.12, a level that technical analysts view as a support zone – provided the legal outlook does not deteriorate further.

The coming weeks carry high stakes. Early in June, plaintiffs in the glyphosate class-action settlement must decide whether to accept the proposed terms. Later that month, the US Supreme Court is due to rule on a separate appeal concerning glyphosate liability, a verdict that could reshape Bayer’s legal exposure. The management team is also scheduled to present a strategic update at the end of May. For now, the company is walking a tightrope between a reinvigorated pipeline and a cash sinkhole that shows no sign of closing.