Bayer has sold a stake in its newly established contraceptives offshoot to global asset management firm Apollo for €3bn ($3.4bn) – allowing the company to access funds without relinquishing overall control of the business.
Through this agreement, Apollo will secure a minority, non-controlling stake in the German life sciences giant’s long-acting reversible contraceptives (LARC) business, which will house the company’s marketed options such as hormonal intrauterine devices (IUD), Mirena, Jaydess and Kyleena, as well as upper arm-based implant, Jadelle.
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While Apollo will own a stake in Bayer’s LARC business if the transaction closes as expected in Q3 2026, the German life sciences giant will still have complete operational control over the business, and there will be no changes to its strategy or activities – which will continue to fall under the remit of Bayer Pharmaceuticals Division’s core operations.
According to Bayer’s CFO, Dr Judith Hartmann, the deal will contribute to the strengthening of the company’s capital structure, while allowing it to retain control over an aspect of its pharmaceutical business which she deems as “core” to Bayer’s offering.
“It [the Apollo deal] enhances our financial flexibility as we manage increased liquidity requirements this year related to bond maturities and litigation procedures, while continuing to execute our long-term priorities,” Hartmann added.
Bayer inks this deal with Apollo after the company took a financial hit from a long-standing litigation over its glyphosate-based weed killer, Roundup, which has been at the centre of several litigations due to its alleged link to cancer. The German pharma giant originally absorbed the rights to Roundup through its $63bn Monsanto buyout, which closed in 2018.
Bayer joins the pharma dealmaking spree
As Bayer looks to restructure and secure its long-term growth prospects, the company has broken its pharma dealmaking stagnation by orchestrating the $2.45bn takeover of ophthalmology specialist Perfuse Therapeutics, which is developing a drug that Bayer hopes will enhance the legacy of its Regeneron co-developed blockbuster therapy, Eylea (aflibercept).
This comes as Bayer places pharmaceuticals at the core of its growth strategy, with the transition away from older blockbusters towards more specialised therapies constituting a key driver of value for the company, according to an article published in Ad Hoc News.
Bayer is not the only company engaging in dealmaking activity to promote long-term growth in the pharma sector, however, as companies from across the space ink multi-billion dollar deals to fortify their pipelines, add new medicines to their portfolios and diversify their offerings.
According to GlobalData’s Pharmaceutical Intelligence Center, the total value of licensing agreements and acquisitions was up 40% and 260%, respectively, in the first quarter of 2026 compared with the same period in 2025, reflecting an enhanced focus on high-value dealmaking across the sector.
GlobalData is the parent company of Pharmaceutical Technology.
