GCF 2012“The Entrepreneurship Imperative”

21-24 January 2012

Dr. Marijn DekkersChairman of the Board of Management of Bayer AG

An Apple A Day Is No Longer Enough?

Aging Population – In This Respect We Are Getting Healthier

Source: OECD

Increase of global average life expectancy Percent of global population aged 65 years+

2Source: OECD

We Are Getting Healthier –

Pharma Industry Contributions

Source: IMS World Review, 1980-2010 *non-currency-adj.

Pharma Industry with steady sales growth

CAGR + 9 %

Number of FDA-approved new pharmaceutical drugs

Pharma Industry R&D–output on high level

Adapted from: Munos, Lessons from 60 years of pharmaceutical innovation, Nature Reviews, December 2009.

0

100

200

300

400

500

600

700

800

900

1000

1990 1995 2000 2005 2010

3

0

10

20

30

40

50

60

70

80

90

100

1990 1995 2000 2005 2010

Global audited pharmaceutical drug sales* US$ bn

*non-currency-adjusted

Source: The Global Burden Of Chronic Diseases, JAMA 2004 – Source derived from data in World Health Report 2003

*Chronic Obstructive Pulmonary Disease **Non-Communicable Diseases

0

10

20

30

40

50

60

1990 2002 2020

CardiovascularDiseases

Other NCD**

COPD*, Asthma

Diabetes Mellitus

Chronic Illness – Global mortality vs. growth of world population

Cancer

At The Same TimeIncrease Of NCDs –

Change Of Lifestyle

0

50

100

150

200

250

1963 1973 1983 1993 2003

Mio. t

developing countries

industrialized countries

Source: faostat.fao.org

Increase of global meat production

NCDs +2% CAGR

World population+1% CAGR

4

No. of deaths mio.

Parallel Effect: Improved Diagnostics –

More NCDs Diagnosed

Computed Tomography exams USA, total Magnetic Resonance Imaging exams USA, total

Num

ber

in M

io

5Source: OECD

Pharma Innovation At Bayer

What it does Status

Cardiology

Xarelto® Prevents Thrombosis• Approved in U.S. EU and Japan for

prevention of stroke

RiociguatLowers Blood pressure in the Lung

• Results of clinical phase III study expected December 2012

Oncology

Regorafenib Inhibits Tumor Growth• Phase III study on colorectal cancer successful• Application for approval planned in Q2 2012

AlpharadinTargeted treatment of bone metastases in prostate cancer

• Phase III study successful• Application for approval planned in Q2 2012

Ophthal-mology

VEGFTrap-Eye

Prevents irregular blood vessels in the back of the eye

• Approved in the U.S. for wet AMD• Approval in EU expected June 2012

6

Continuous Effort Required –

Significant Medical Need Re. NCDs Will Persist

Top 10 killers worldwide

Source: McKinsey

1. Ischaemic heart disease

2. Cerebrovascular disease

3. Lower respiratory infections

4. Chronic obstructive pulmonary disease

5. HIV/AIDS

6. Diarrhoeal diseases

7. Tuberculosis

8. Respiratory cancers

9. Childhood-cluster diseases

Hypertensive heart disease

1. Ischaemic heart disease

2. Cerebrovascular disease

3. HIV/AIDS

4. Chronic obstructive pulmonary disease

5. Lower respiratory infections

6. Respiratory cancers

7. Stomach cancer

8. Hypertensive heart disease

9. Nephritis and nephrosis

Liver cancer10. 10.

20302005

7

Rising R&D Expenditures –

Adequate Rewards?

Source: FDA, PhRMA, Bank of Amerika Merrill-Lynch Global Research

Worldwide R&D spending (indexed, 1996 = 100)

FDA approvals new pharmaceutical drugs (indexed, 1996=100)

8

Dr. Marijn DekkersChairman of the Board of Management of Bayer AG