Bayer (AO) | Buy | Bayer gets EUR3bn from selling a minority stake in contraceptives

Research evidence excerpt

Bayer (AO) | Buy | Bayer gets EUR3bn from selling a minority stake in contraceptives

News comment

Release date: 10 July 2026

Christian Faitz, CFA

Co-Head of Chemicals

+49 69 756 96 147

cfaitz@keplercheuvreux.com

David Evans

Head of Pharma & Biotech Sector Research

Buy +44 (0) 207 621 5197Bayer

devans@keplercheuvreux.com

Germany | Chemicals Beta Profile: MCap: EUR49.8bn Country Top Picks

Target Price: EUR49.00 Bloomberg: BAYN GR Reuters: BAYGn.DE

Current Price: EUR50.70 Free float 100%

Up/downside: -3.4% Avg. daily volume (EURm) 242.0

YTD abs performance 37.0% Market data: 09 July 2026

52-week high/low (EUR) 53.36/24.98

Bayer gets EUR3bn from selling a minority stake in contraceptives

Key points:

Bayer is securing EUR3bn in funds by selling a minority stake in its "long-acting reversible contraceptives" ("LARC") activity to

private equity firm Apollo. Bayer will retain a majority stake and will continue to exercise complete operational control over the

activity. LARC will remain fully consolidated, as part of Bayer's Pharma division.

Ex pensions, Bayer per Q1 2026 still had some EUR33bn in net debt, and hence the EUR3bn cash inflow from the Apollo

transaction is an interesting financing bridge, particularly in a year where still several EUR billion (at least EUR5.5bn if the

litigation settlement agreement around glyphosate is approved) are leaving the organisation.

We keep a BUY rating on the stock, despite the share price having very recently moved beyond our current target price of EUR49.

Our view, valuation and recommendation

Bayer's contraceptives formed the major part of the 2006 Schering acquisition and contain products such as Mirena and Kyleena.

The Mirena / Kyleena / Jaydess cluster per 2025 had annual sales of EUR1,366m, or +13% YoY organically.