Bayer's Second China Nod Caps a Week of Raised Targets and Divided Analysts
Published on 11/04/2026 at 16:32 | Editorial boerse-global.de
Bayer has secured Chinese approval for Sevabertinib as a first-line treatment for adults with advanced HER2-mutated non-small cell lung cancer, the company said, marking its second regulatory green light in China in quick succession. The decision rests on data from the Phase I/II SOHO-01 trial.
The approval follows Bayer's October 26 announcement that China had cleared Asundexian, to be marketed as Sunharbo, for reducing stroke risk after a non-cardioembolic ischemic stroke or high-risk TIA. Bayer billed it as the world's first approved Factor XIa inhibitor.
Quarterly Beat Fuels Guidance Upgrade
Investor attention, however, has centered on the earnings release. Bayer posted third-quarter 2026 revenue of EUR 10.053 billion, up 4.1%, while EBITDA before special items climbed 6.9% to EUR 1.615 billion. The pharmaceutical division did much of the heavy lifting, with EBITDA before special items there jumping 23.6% to EUR 1.292 billion.
That showing prompted Bayer to lift its full-year outlook. Management now guides to EBITDA before special items of EUR 9.8 billion to EUR 10.3 billion, up from a prior range of EUR 9.6 billion to EUR 10.1 billion. The free cash flow forecast was also raised, to between minus EUR 1.5 billion and minus EUR 0.5 billion from an earlier minus EUR 2.5 billion to minus EUR 1.5 billion.
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The cash picture remains negative, though. Free cash flow came in at minus EUR 0.3 billion for the quarter, and the group posted a net loss of EUR 0.7 billion. Adjusted earnings per share stood at EUR 0.31. Net financial debt was reported at EUR 31.1 billion.
UBS and JPMorgan Turn Bullish, Jefferies Stays on the Fence
The stock rose 4.3% on the back of the results and the upgraded guidance, building on a 3.7% advance the previous session, when Reuters linked the move to the better-than-expected performance of the pharma unit and the more optimistic annual forecast.
Sell-side reactions diverged sharply. UBS lifted its price target to EUR 66 from EUR 62 while reaffirming a Buy rating, with analyst Matthew Weston pointing to the strong quarterly result in the pharmaceuticals division. JPMorgan likewise kept an Overweight rating and a EUR 61 target; analyst Richard Vosser cited the robust pharma business, the positive EBITDA surprise and the brighter outlook.
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Jefferies, by contrast, maintained Hold with a EUR 46 target. Analyst Michael Leuchten acknowledged the beats on sales and adjusted operating profit but flagged possible one-off effects, noting that core earnings per share fell short of consensus.
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