Bayer Places a $2.45 Billion Bet on Eye Care as Eylea’s Patent Wall Crumbles

Bayer buys Perfuse Therapeutics for up to $2.45B to bolster its ophthalmology pipeline as Eylea patents expire, while facing glyphosate litigation and restructuring pressure.

The clock is ticking on one of Bayer’s most lucrative revenue streams, and the German conglomerate is moving decisively to fill the gap. With patents for its blockbuster eye drug Eylea nearing expiration, the company has agreed to acquire California-based biotech Perfuse Therapeutics for up to $2.45 billion. The deal puts a new clinical-stage candidate called PER-001 at the center of Bayer’s strategy to defend its ophthalmology franchise.

The upfront payment of $300 million will be followed by milestone-linked tranches tied to development and commercial targets, pending antitrust and shareholder approvals. PER-001 is currently in mid-stage trials targeting glaucoma and diabetic retinopathy—conditions that affect roughly 226 million people worldwide. For Bayer, the acquisition represents a calculated attempt to replenish a pipeline that has relied heavily on Eylea, which generated €3.1 billion in sales last year alone.

The timing is no coincidence. The stock has already priced in some optimism, climbing more than 60% year-to-date and closing at €38.59 on Wednesday, up 2% on the day of the announcement. Yet the real test comes on May 12, when Bayer reports first-quarter earnings. That report will serve as the first major checkpoint for CEO Bill Anderson’s restructuring plan, dubbed “Dynamic Shared Ownership,” which has already eliminated six layers of management and aims for €2 billion in annual savings by the end of 2026.

Early signals from the quarter are mixed. The Crop Science division posted €4.9 billion in revenue, but lower fungicide volumes dragged sales down 5%. The pharma unit, which contributes nearly half of group revenue, provided a steadier hand, buoyed by growth in the kidney drug Kerendia. Positive regulatory news from Japan—where Bayer secured approval for the MRI contrast agent Ambelvist and an additional indication for Eylea—also lent support.

Still, the balance sheet remains under strain. The legacy of glyphosate litigation continues to weigh on cash reserves. Bayer expects negative free cash flow of up to €2.5 billion this year, pushing net debt toward €33 billion. To preserve capital, the company paid only the statutory minimum dividend of €0.11 per share in late April.

The legal overhang is far from resolved. A pivotal U.S. Supreme Court ruling expected by the end of June could redefine the legal framework for thousands of outstanding Roundup lawsuits. That decision looms large over Anderson’s turnaround narrative, as investors demand proof that the restructuring is translating into tangible results.

At €37.84, the stock remains comfortably above its 200-day moving average, though a relative strength index of 77 signals the shares are technically overbought in the near term. Management has guided for adjusted earnings per share of €4.30 to €4.80 for the full year. The first-quarter report will set the operational tone for the months ahead—and determine whether Bayer’s twin bets on pipeline deals and internal overhaul can deliver the momentum the company desperately needs.