In listening mode, new Bayer CEO keeps ‘open mind’ on company split By Reuters

By Tom Käckenhoff, Patricia Weiss and Matthias Williams

LEVERKUSEN, Germany (Reuters) – Incoming Bayer (OTC:) chief government Invoice Anderson says he’s holding an open thoughts on whether or not to interrupt up the corporate into smaller items, as some fidgety buyers need.

Anderson, who takes over the practically 160-year-old German drugmaker initially of June after calls from buyers to take away his predecessor, says he’ll spend the subsequent two months “listening” and sees no consensus on the difficulty up to now.

The 56-year-old chemical substances engineer from the U.S., introduced over from Swiss rival Roche, begins at a testing time, weighed down by lawsuits claiming Bayer’s weed-killer causes most cancers and strain from buyers demanding main change.

Talking to reporters at Bayer’s headquarters in Leverkusen on Tuesday, Anderson supplied some clues as to his imaginative and prescient for the corporate, stressing a give attention to outcomes and advancing science, whereas holding open the query of a break-up.

“I believe it is an overgeneralisation to say that is what everyone thinks ought to occur,” he mentioned, saying that some buyers wished a break up whereas others wished higher execution.

“That is why I mentioned I’m going to have an open thoughts,” he mentioned. “As a result of if I merely got here in and mentioned ‘no I believe the reply is construction change’, I believe that will actually be short-changing the folks and the legacy of this firm.”

Bayer introduced Anderson’s appointment in February, placing in cost solely the second chief government in its historical past who didn’t come from the corporate’s personal ranks.

He replaces Werner Baumann, who promised “evolution not revolution” initially of his tenure in 2016 however quickly after launched the $63 billion takeover of seeds and pesticides maker Monsanto (NYSE:).

Lawsuits have dogged Bayer because it acquired the Roundup weed-killer model as a part of the Monsanto buy. Anderson mentioned he took the lawsuits “very critically” however didn’t spell out a future plan of action about them.

On the inventory market Bayer, as soon as essentially the most priceless firm on blue-chip index, is now value solely about the identical because it paid for Monsanto.

“For me, it is about: hey we received three superb companies, they’re delivering actually essential merchandise, medicines,” Anderson mentioned.

“My focus goes to be round that, taking that every one into consideration, how will we drive progress, what are the choices?”

Buyers anticipate Anderson to revive investor confidence and evaluation the corporate’s construction after years of hypothesis a few break-up that would take away no less than a few of Bayer’s conglomerate low cost.

“We see it as optimistic that Invoice Anderson seems to need to focus first on accelerating progress with fixing litigation and bettering productiveness in R&D, however can also be leaving the door firmly open for larger-scale restructuring of the group sooner or later,” mentioned Terence McManus, the Senior Portfolio Supervisor for Healthcare at Bellevue Asset Administration.

McManus instructed Reuters he anticipated any restructuring to take time and in addition be contingent on the opinion of Bayer’s chairman.

GRAPHIC – Bayer has lagged rivals

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OWNERSHIP BUT NO DESK

With a long time of expertise within the pharmaceutical business, father-of-three Anderson usually seems in T-shirts and informal put on, and met reporters on Tuesday sporting a black jacket and denims. At Bayer, he mentioned he didn’t have his personal desk and made use of the corporate’s assembly rooms as wanted.

Professing a love of American soccer, mountain climbing and snowboarding, he was additionally effusive about Bayer as an organization and its heritage of medicines comparable to Aspirin.

Anderson has moved residence 13 instances. Leverkusen reminds him of Jackson, Texas, the place he grew up within the shadow of a giant Dow Chemical plant the place his father labored, he mentioned.

Initially of his tenure, he additionally faces one other problem.

“Ich muss Deutsch lernen,” he mentioned: “I’ve to be taught German.”