201
`(J Augmented Version
`
`
`
`
`WATSON LABORATbRIEé, INc.',‘
`is. 1 of 361
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 1 of 361
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`

`

`SALES‘
`(63 biElionJ
`
`
`365 39.7 40.2 41-346 +6:/0
`
`20112012 2013 2014 2015
`
`
`CAGR2 2011-2015
`
`EARNINGS PER SHARE-l
`(e)
`
`4.97
`L
`3'
`
`g
`
`,9?
`
`336 4.14
`1
`It
`
`1;:
`
`z.
`
`g
`
`n
`299 2.91
`
`l’
`
`r
`
`5%
`
`i
`
`
`
`
`
`EBITDA BEFORE SPECIAL ITEMS1 I
`(62 biliionl
`
`
`7.6
`
`0.3
`
`8.4
`
`87 10.3
`-
`
`
`
`CAG ‘2 2011-2015--
`20112012 2013 2014 2015
`
`
`
`
`MARKET CAPITALIZATION
`
`(E biilionl
`40.95g :g} g@+ 2 4%0/0
`
`843 93.4 95-3
`
`
`EL ii iii.
`
`CAGR2 2011-2015
`
`RED EKPENSES'i (E billion)
`
`2.9
`
`a;
`
`3-D
`
`F‘
`
`3.4
`
`.
`
`is}
`
`.
`is
`35 43
`‘i
`'
`
`g;
`i
`
`(a
`l
`
`CAGR22011—2015
`'
`§ 43th =
`
`‘ 2014 figures restated; figures for 2011 — 2013 as last reporled
`1 Compound annuai growth rate
`
`
`0
`0/0
`
`I 1
`
`RECORDABLE INCIDENT
`RATE (RIR)
`
`We?
`
`0.55
`5:!
`s;
`
`"‘49 “47 0.43 042
`2.4
`mm
`32%».
`iii 4 ii
`m
`i
`r
`ii
`.
`r:
`20112012 2013 2014 2015
`
`
`CAGR22011-2015
`
`Cover picture I'.’ Bayer is focusing exclusively on its Life Science businesses.
`Our cover picture shows scientisE Dr. Wen Chang from Crop Science and
`Dr. Daniel Forler (right) from Pharmaceuticals with a projected image of DNA.
`
`WATSON QEABORATORIES, INC. , Ex. 1077, p. 2 «$361
`
`Annual Report
`
`III You can read in
`in the Magazin
`
`about Life Sciences
`ction of this
`inning on page 10.
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 2 of 361
`
`

`

`Five-Year Summary
`
`
`
`
`
`from 2014
`2011
`2015
`2013
`2013
`2015 ___
`("fol
`
`
`
` (-2 million € million E million E million € million
`
`
`
`Bayer Group
`F
`
`Sales
`36,523
`39,741
`40,157
`41,339
`46,324
`412.1
`
`EBlT'l
`4,149
`3,928
`4,934
`5,395
`6,250
`+158
`
`EBITV see... Special items2
`25,025
`5,639
`5,773
`5,333
`7,067
`421.2
`
`E51164:
`"6,913
`6,916
`“3,830
`3,315 ...._ 9,533
`415.2
`
`EBITDA before special eerie?"
`V
`7
`7,613
`3.230 7
`7
`8,401
`3,635
`10,266
`+1312"
`
`EBITDA margin before Special items5
`20.8%
`20.8%
`20.9%
`21.0%
`22.2%
`
`Income before income taxes
`3,363
`“3,126
`4,207
`4,414
`5,245
`+133
`
`Net income
`2,470 .5.
`2,403
`3,139
`3,426
`4,110
`+200
`Earnings per share l€l
`from continuing and
`....
`
`discontinued operations"
`2,99
`2.91
`. 31.867
`4.14
`4.97
`+200
`
`Core earnings per share (El-front continuing operations;
`4.83
`5.30
`5.61
`5.89
`6.83
`+160"
`
`Gross cash 0qu
`5,172
`4,556—
`5,332
`6,707
`6,999
`44.4
`Net cash flow from continuing and
`m
`
`discontinued operations‘7
`5.060
`4,530
`5,171
`5.810
`6,390
`+1835
`
`file-t-iinanclal debt
`3,013
`7.022
`6,731 _
`'
`'11:,6'12— _ 17,443
`—11.0
`
`Capital expenditures as per'gegniem table
`1,666
`2,012
`72,1557
`2,434
`2.556
`+2.9
`
`Research and development expenses
`2,932
`3,013_
`3,406
`3,537
`4,281
`+210
`
`Return on equity
`13.0% _.. 13.0%
`16.2%
`16.8%
`17.9%
`
`Equity ratio
`um— 36.5%
`36.1%
`40.5%
`28.8%
`34.4%
`
`+11.1
`
`
`Bayer AG
`15 million
`6 million
`e milllcn
`e million
`2 million
`
`Net income
`1,125
`839
`—
`2,493
`2,454
`1,361
`—44.5
`
`Allocationmt'o (withdrawal from) retained earnings
`(239)
`[682)
`761
`593
`(706) M
`
`Total dividend payment
`1,364
`1,571
`1.737
`1,861
`2,067
`
`Dividend perisné'i'eiel'“
`1.65
`__
`1:15-07, 7"
`2.10
`2.25
`
`Employees
`
`nails; of ernployeeelU (Dec. 311
`111,300
`110,000
`112,400
`117,400”
`116,000“
`40.5
`Personnel expenses lineludirlg— pension expenses)
`__—
`
`(€ million)
`3,726
`9,194
`9,430
`9,693
`11,203
`+156
`
`Pruportion of women in senior management We)
`22
`23
`25
`26
`2B“
`
`45.7
`iuumber of nationalities in the Group Leadership Circle
`.5
`22
`23
`31
`_
`35
`33
`
`Proportion oi-e‘mployees with health insu
`ten-1%)
`94 7777777777777794 7
`95
`96
`96
`—-- W—
`Prrorportion of employees covered by collective agreements
`i U“
`i
`7
`if
`
`on pay and conditions (“/01
`..,_
`54
`53
`54
`52
`53
`
`2.50
`
`7 "+11.1"
`
`
`Safety"
`
`Recordable"incident Rate for Bayer employees 0202)
`0.56
`““049
`0.47
`0.43
`0.42
`—1.6
`Lost Time Recordable Incident Rate for Bayer employees
`w
`W
`
`lLTRIR)
`0.31
`0.27
`0.26
`0,22
`0.21
`—6.4
`Loss of Primeryu-Eontainment Incident Rate (Lupe-"110T2 —7'.'7 ' — 633 ‘ 0.35 0.23 0.22
`
`
`
`
`
`
`
`
`
`
`
`
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 3 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 3 of 361
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`

`

`
`Change
`from 2014
`1%:
`
`
`
`2011
`
`2012
`
`2013
`
`2014
`
`2013
`
`
`
`EnvironmentalIProtection“
`#
`A m
`
`Primary energy consumption lpetajoules‘3i'al
`50.10
`49.05
`42.50
`45.5?
`43.00
`—5.7
`
`Secondary-energy consumption (petaipulesWa)
`5:14.85
`34.14
`33.27
`.. 39.74
`40.19
`+1.1
`
`Engigy efficiency (MWh/tl M
`7 '
`___..
`3.63
`3.50
`3.44" 7
`3.37
`3.34
`—0.6
`Direct greenhouse gas emissions _
`......._ ..
`_
`
`lCOz equivatents in miliion ti ‘5
`4.23
`4.24
`4.09
`4.02
`4.417
`+9.7
`Indirect greenhouse gas emissions
`_
`“my ..
`(C02 equivalents in million t),
`
`according torthe market-based method“. Y
`__—_
`4.72
`4.91
`. 5»53_“ _
`530
`—4.1
`Specific greenhouse gas emissions
`H
`(CO; equivalents in t/manufactured sales volume in ti,
`
`according to the market-based method‘i“S
`—
`1.06
`1.09
`112
`1.19
`,, +6.0",
`
`Volatile organic compounds (VOC) ithousand t/a)"
`-
`W
`2.69
`7
`260
`‘
`2.27
`2.12
`1.61"
`424.0
`
`Total organiccaurbon (TOE) [thousand ti'al
`1.55" I
`1.42
`1.53
`120—
`"-1.16
`73.3
`
`Hazardous waste generated (thousand ti'aJ
`474
`603
`46?
`M48?
`541
`+11.1
`
`
`
`
`
`
`
` 411 384 361 350 346Water use [million m3/a) -‘l.1
`
`‘
`
`2014 figures restated; figures for 2011 - 2013 as last reported.
`‘
`EBIT = income after income taxes, plus income taxes, plus financial result.
`This indicator is not delined in the international Financial Reporting
`Standards.
`2 EBlT before special items = EBIT plus special charges, minus special gains.
`This indicator is not defined in the International Financial Reporting Stan-
`dards. See also Combined Management Report. Chapter 14.2 “Calculation of
`EBlTlDA) Before Special Items."
`3 EBITDA = EBIT Plus the amortization of intangible assets and the deprecia‘
`tion of property, plant and equipment. plus impairment losses and minus
`impairment loss reversals. recognized in profit or loss during the reporting
`period. This indicator is not defined in the international Financial Reporting
`Standards. See also Combined Management Report, Chapter 14.2 “Calcula-
`tion of EEliTtDAl Before Special items."
`EBITDA before special items = EB!TDA plus special charges, minus special
`gains. This indicator is not defined in the international Financial Reporting
`Standards. For details, see Combined Management Report, Chapter 14.2
`"Calcuiation of EBITlDAi Before Special Items.”
`ding EBITDA
`5 The EBiTDA margin before special items is calculated by d
`before special items by sales. This indicator is not defined in the Internation'
`at Financial Reporting Standards. For details, see Combined Management
`Report, Chapter 14.2 "Calculation of EBlTlDA) Before Special items."
`5 Earnings per share as defined in IAS 33 = net income divided by the average
`number ofshares. For details, see Note [16] to the Consolidated Financial
`Statements.
`7 Core earnings per share = earnings per share, plus/minus amortization and
`impairment losses! impairment loss reversals of intangible assets, impair‘
`ment losses I impairment loss reversals on property, plant and equipment,
`pius special charges, minus special gains lotherthan amortization and im
`pairment losseslimpairment loss reversals), piuslminus the related tax ef-
`fects and the share of the adjustments attributable to noncontrolling interest.
`This indicator facilitates the comparability of performance over time. It is not
`defined in the international Financial Reporting Standards.
`For details, see Combined Management Report, Chapter 14.3 "Core Earn-
`ings Per Share.“
`
`5‘ Gross cash flow : income after income taxes. plus income taxes. D5115
`financial result, minus income taxes paid or accrued, plus depreciation,
`amortization and impairment losses, minus impairment loss reversals,
`pluslminus changes in pension provisions, minus gainsl'plus losses on
`retirements of noncurrentassets, minus gains from the remeasurementof
`already held assets in step acquisitions. The change in pension provisions
`includes the elimination of noncash components of EBiT. It also contains
`benefit payments during the year. Gross cash flow is not defined in the
`international Financial Reporting Standards. For detaiis, see Combined
`Management Report, Chapter 14.5 “Liquidity and Capital Expenditures of
`the Bayer Group."
`‘7 Net cash flow=cash flow from operating activities according to IAS 7
`1” Full-time equivalents
`" Percentage changes not based on rounded figures
`‘2 LoPCeIR: rate of incidents in which chemicals leak from their primary
`container, such as pipelines, pumps, tanks or drums, per 200,000 working
`hours in areas relevant to plant salely
`1 petajoule =10'5joules
`‘3
`1“ Energy efficiency: quotient oflotal energy consumption and manufactured
`sales volume. For Covestro, only manutactured sales volumes that also form
`the basis for calculating Covestrorspocific emissions are taken into account.
`‘5 Portfolio-adjusted in accordance with the Greenhouse Gas Protocol
`“5 Specific Group emissions are calculated from the total volume ofdirect
`emissions and indirect— calculated using the market-based method ofthe
`new Scope 2 GHG Protocol — emissions of the subgroups, including the
`emissions atthe Belford Roxo site and emissions from the vehicle fleet, both
`reported for the Group as a whole, divided by the manufactured sales vol~
`ume ofthe three subgroups in metric tons. Quantities attributable to the
`supply ofenergy to external companies are deducted from the directand
`indirect emissions. At Covestro, neither the byeproducts sodium hydroxide
`solution and hydrochloric acid generated during production our trade prod-
`ucts are included in the manufactured sales volume.
`37 Volatile organic compounds iVOCi excluding methane
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 4 of 361
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 4 of 361
`
`

`

`
`
`
`
`Life Science company
`For the heart
`Fit in 0ch age
`Defying the weather
`Living with dengue
`Covestro on the stock market
`
`
`
`Board of Management
`Report of the Supervisory Board
`Investor Information
`
`Report on Economic Position
`Overview of Sales, Earnings and Financial Position
`Business Development by Subgroup, Segment and Region
`Earnings; Asset and Financml Position of the Bayer Group
`Earnings; Asset and Financial Position of Bayer AG
`
`Corporate Governance Report
`Events After the End of the Reporting Period
`Future Perspectives
`TdeUVUi’RUiHVdHi li'ili'n'i'r'ialion
`
`Bayer Group Consolidated Income Statements
`Bayer Group Consolidated Statements of Comprehensive Income
`Bayer Group Consolidated Statements of Financiai Position
`Bayer Group Consolidated Statements of Cash Flows
`Bayer Group Consolidated Statements of Changes in Equity
`
`
`Governance Bodies
`Organization Chart
`GRi (34 Content index with UNGC Principles
`Glossary
`Financial Caienttar
`
`Five-Year Summary
`
`CHAIRMAN'S LETTER
`
`MAGAZINE
`
`ABOUT THIS REPORT
`
`TO OUR STOCKHOLDERS
`
`01
`COMBINED MANAGEMENT
`REPORT OF THE BAYER GROUP
`AND BAYER AG
`
`02
`CONSOLIDATED
`FINANCIAL STATEMENTS
`OF THE BAYER GROUP
`
`RESPONSIBILITY STATEMENT
`
`AUDITOR'S REPORT
`
`03
`FURTHER INFORMATION
`
`Bayerata Glance
`Strategies of the Segments
`Economic Environments of the Subgroups
`Research, Development, iilllUlelUll
`Sustainability Management and Governance
`Empioyees
`Procurementi Production, Logistics, Distribution
`Product Stewardship
`Safety
`Environmental Protection
`Social Commitment
`
`Masthead, Disclaimer
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 5 of 361
`
`

`

`Chairman’s Letter
`
`Investment in the future
`
`21‘... Mae/”gm M
`
`2015 marked a decisive year in the history of our company. We suc—
`
`cessfully executed all the necessary steps to transform Bayer into
`
`an integrated Life Science company. For more than 150 years, the
`
`core of Bayer's business model has been to invent new molecules
`
`and turn them into innovative products. Now we are focusing solely
`
`on those molecules that influence the biochemical processes within
`
`living organisms.
`
`With the enormous and ongoing progress being made in the Life
`
`Sciences, our ability to turn scientific findings into innovative prod—
`
`ucts and solutions continues to grow. We are harnessing this poten-
`
`tial to improve the health of humans, animals and plants. As a Life
`
`Science company, we can now sharpen the focus of our entire orga-
`
`nization on fulfilling our mission, "Bayer: Science For A Better Life."
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 6 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 6 of 361
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`

`Our portfolio is well diversified and balanced, both in terms of
`
`profitability and risks. Our divisions are highly competitive, hold—
`
`ing leadership positions in their markets. And our focused busi—
`
`ness model offers significant potential to leverage synergies
`
`across the board — from research to product approval processes
`
`and from operations to talent development. It is important to
`
`sustain this momentum and continue reaping the fruits of our
`
`strategy.
`
`In order to leverage our focus, we have given our organization a
`
`clear, integrated and more operations—based structure. Since Jan-
`
`uary 2016, the heads of our new divisions — Pharmaceuticals, Con—
`
`sumer Health and Crop Science — have been members of the Board
`
`of Management of Bayer AG. This enhances operational account—
`
`ability and accelerates decision-making, which are important for
`
`an innovation company. In this connection, I'm proud of the exten—
`
`sive measures we have taken to broaden Bayer’s diversity in terms
`
`of gender and culture. This is now also reflected in the membership
`
`of the Board of Management.
`
`Bayer’s transformation into a pure Life Science company has
`
`consistently been accompanied by robust financial results. Over
`
`the last five years we showed very good performance. It demon—
`
`strates the strength of our company and the commitment of our
`
`employees.
`
`In 2015, revenues from continuing operations rose to a record
`
`level of more than €46 billion. On a currency- and portfolio-
`
`adjusted basis, this is an increase of 2.7 percent. Our clean EBITDA
`
`rose substantially by more than 18 percent to €103 billion, and
`
`core earnings per share advanced by 16 percent to €6.83. Our in—
`
`novative new products especially contributed to this success and
`
`also played a substantial role in making 2015 another record year
`
`for Bayer. All three new divisions posted above—market growth.
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 7 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 7 of 361
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`

`

`5
`
`5c;3,.
`
`Dialogue at a pharmacy in Germany: Bayer CEO Dr. Marijn Dekkers meets pharmacist Valeska Fritzifiottschall from Cologne.
`
`Sales of our Pharmaceuticals segment climbed by 9.9 percent on a
`
`currency— and portfolio-adjusted basis. Our five recently launched
`
`products — Xareltol“, Eylea“, Stivargam, Xofigow and AdempasTM -—
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 8 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 8 of 361
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`

`

`again contributed to this pleasing performance with combined sales
`
`of €42 billion, compared with €23 billion in 2014.
`
`At Consumer Care (now called Consumer Health), currency-
`
`and portfolio-adjusted sales growth was 6.1 percent. During the
`
`past year, we successfully integrated the business acquired from
`
`Merck & C0., Inc.
`
`Despite a weaker market environment, CropScience raised sales
`
`by 1.7 percent on a currency- and portfolio—adjusted basis. Of the
`
`regions, Europe showed the strongest growth, which was driven by
`
`the positive development of crop protection products and seeds.
`
`Thanks to the ongoing support of our investors, Bayer continued to
`
`have the highest market capitalization of all the DAX companies in
`
`2015. And despite a challenging market environment, we success—
`
`fully floated 0ur former MaterialScience subgroup 0n the stock
`
`market in October 2015 — nine months before the end of our origi—
`
`nal roadmap. It is now a legally and economically independent
`
`company: Covestro. We wish our former colleagues every success
`for the future!
`
`In addition to the IPO of Covestro, we undertook further transactions
`
`in support of our strategy. In June 2015, we signed an agreement to
`
`sell the Diabetes Care business to Panasonic Healthcare Holdings
`
`C0,, Ltd., Tokyo, Japan. In July 2015, we closed the acquisition of
`
`SeedWorks India Pvt. Ltd., based in Hyderabad, India.
`
`Over the years, our portfolio strategy has consistently enhanced our
`
`profile as a Life Science company. In particular, the acquisitions of
`
`the consumer health businesses of Merck and Dihon in 2014 gave
`
`our Consumer Health business the necessary critical mass to oper—
`
`ate as a separate division.
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 9 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 9 of 361
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`

`

`Being successful as a Life Science company requires a pronounced
`
`innovation culture that is the breeding ground for new ideas and
`
`facilitates their translation into successful products. It often all
`
`starts in the laboratory which is why, between 2011 and 2015, we
`
`increased our annual research and development spending by €1.4
`billion to €4.3 billion. This is a substantial investment in our future.
`
`At the same time, we have become better and faster at bringing
`our innovations to market.
`
`At the end of 2015, we established our new Bayer Life Science
`
`Center. This strategic innovation unit has been designed to help
`
`uncover, encourage and unlock breakthrough cross-species tech—
`
`nologies and know—how for Bayer by enabling collaborations with
`
`entrepreneurial best-in—class companies. The first of these part—
`
`nerships is a joint venture with CRISPR Therapeutics AG, a compa-
`
`ny specialized in utilizing the new CRISPR-CaS9 gene editing tech-
`
`nology. Together we aim to discover, develop and commercialize
`
`groundbreaking therapeutics to cure blood disorders, blindness
`
`and congenital heart disease. We could use any findings that go
`
`beyond these three indications in nonhuman applications as well —
`
`for example, in agriculture.
`
`Successful innovation requires an ongoing reassessment and refine-
`
`ment of processes and partnerships. The freedom to experiment
`
`and the determination to execute with precision must be well bal-
`
`anced. Today, Bayer is one of the most innovative companies in
`
`our industry. As a Life Science company, we are in very good shape
`to continue to deliver profitable growth.
`
`With our innovations we address major societal challenges on a
`
`global scale. Around 9.7 billion people will be living on our planet
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 10 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 10 of 361
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`

`

`by 2050. How can humankind succeed in feeding so many people,
`
`especially in regions where agriculture is difficult? By developing
`
`better seeds and new products to protect crops, Bayer is helping to
`
`ensure an adequate food supply for the world’s population.
`
`At the same time, average life expectancy continues to increase.
`
`How can humankind ensure that a high quality of life is preserved
`
`at an advanced age? By developing innovative solutions and new
`
`medications, Bayer is helping people tackle diseases and lead an
`
`active life longer.
`
`But it's not just through our innovations, but also through our activ-
`
`ities, that we are helping people lead a better life. We seek to achieve
`
`economic growth in harmony with ecological and social responsi-
`
`bility. As evidence of this commitment, we adhere to the fundamen-
`
`tals of sustainable development and the ten principles of the United
`
`Nations Global Compact.
`
`In this context, it is essential to maintain an open and active dia-
`
`logue with all our stakeholders. We act responsibly, have good ar—
`
`guments and need not shun controversy. Ultimately, no one can
`
`deny the huge benefit delivered by the innovations from our labora-
`
`tories. In the life science industry, it's all too easy to overlook the
`
`significant downside of not deploying these innovations. We need
`
`the societal acceptance and appreciation to continue to contribute
`those benefits.
`
`The best ambassadors for our company are our employees. With
`
`their passion to innovate, they live our mission each and every day.
`
`On behalf of the entire Board of Management, I would like to thank
`
`them for their dedication. Their daily efforts are what make Bayer a
`
`great company and a good investment.
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 11 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 11 of 361
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`This is my last Chairman's Letter to you as CEO of Bayer. I am thank—
`
`ful for your continued trust and support. It has been an extremely
`
`rewarding experience for me to have the opportunity to lead such a
`
`fantastic company to new heights. I have enjoyed working with so
`
`many great colleagues, and while I contributed with my know-how
`
`to ourjoint success, I feel I learned just as much in turn.
`
`Bayer is an iconic brand, offering an endless source of innovation.
`
`With its solid foundation and a deep management bench in place,
`
`I am convinced that Bayer can continue its journey as one of the
`
`most innovative companies in our industry.
`
`Sincerely,
`
`WW Def/W
`
`Dr. Marijn Dekkers
`Chairman of the Board of Management of Bayer AG
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 12 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 12 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 13 of 361
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`

`II-L-L'I'FESC'iE'NCE':
`
`I
`
`_
`
`Qur' busmessportfohois how
`foCused excluswely on the __
`_.
`_ Life Sc1ences andohsolvmg the
`- majorchallenges Ofthe future —_'
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`{from Pharmaceutlcals through
`_' ConsumerHealth" ’"di-AmmalHealth]:
`
`company,- we ca
`
`-
`
`Offerselu’uo _.
`and agr1cu1t._
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 14 of 361
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`

`

`
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 15 of 361
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`

`

`Our
`
`_ Products
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 16 of 361
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`

`

`1
`
`__
`
`_
`
`'
`
`__
`
`_
`
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`_ Ourbroad product portfol1o1ncludes many
`world~famous'brands whichhaVe shaped the
`_.
`'§'--'-:_"_iconic Bayer brand. some of them havebeen:
`-___'helping Our oilsto'm'e'rs for decades Others Only '
`recently came out of our labs Their actiVe
`ingredients are designed to influence the bio—
`' chemical proCeSses in living organisms. As
`different as people, animals and plants might
`- Seem, common rules govern the molecular
`mechanisms in all life forms. The active ingre-
`dients promote or enable positive processes
`or they prevent or suppress negative processes.
`
`I
`
`That’s What Life Science is all about. And
`I with our innovative products, we help to make
`
`life better.
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 17 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 17 of 361
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`

`

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`Protecting against
`fungal infestation
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`
`Seed with improved
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`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 18 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 18 of 361
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`
`Contraception
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`andmenopausaldisorders
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 19 of 361
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`

`
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 20 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 20 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 21 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 21 of 361
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`

`

`14
`
` Magazine If Life Science
`
`Bayer Annual Report 2015
`
`But both men are also aware that they might have to.
`"When people have already survived one heart attack, the
`risk of having another increases for the rest of their lives,
`meaning that longsterm medical care is imperative,” ex-
`plains Dr. Wolfgang Steffen, a cardiologist in Rottweil
`and Miiller's attending physician. Alongside the manage—
`ment of cardiovascular risk factors in line with standard
`
`care practice and any necessary lifestyle changes, an es-
`pecially important part of treatment is that patients regu-
`larly take their prescribed medication, including drugs
`that counteract blood-clotting and therefore help prevent
`another heart attack. "it's also very important for patients
`to be aware of the many things they can do to help their
`heart recover," Steffen emphasizes. "In concrete terms,
`that means no smoking, a different diet, regular exercise,
`minimized alcohol intake, stress reduction and, if neces-
`sary, treatment for depression." His patient, Remigius
`Miiller, has taken this advice to heart. He wouldn't even
`think of skipping his medications. Apart from acetylsali-
`cylic acid, which inhibits platelet aggregation, he also
`takes blood pressure- and cholesterol-lowering medicar
`tion. "I'm certain that the drugs are the reason I feel well
`again today," he says.
`
`Axel Vogel is likewise thankful for the opportunities
`afforded by modern medicine. ”They enable me to reach
`the best level of performance 1 am still capable of."
`Vogel’s heart sustained permanent damage from his
`
`
`
`
`IItilli()Il
`
`people worldwide die every year of a
`cardiovascular disease. This figure is
`forecast to increase to over 23 million
`
`by 2030.
`
` (Source: American Heart Association: 2015 Heart Disease and
`Stroke Statistics Update)
`
`heart attack. He suffers from arrhythmia and had a
`pacemaker implanted three years ago. In addition,
`his heart function has deteriorated over the years
`and along with it his performance capabilities.
`Just climbing a few stairs wears him out. Because
`of his extreme heart failure, Vogel has been in
`treatment for some time under Professor Volker
`
`Rudolph, Chief Senior Physician of the Cardiology
`Center at Cologne University Hospital.
`
`Heart failure is one of the potential complications
`following a heart attack. "Twenty to 30 percent of
`patients who have had a heart attack subsequently
`develop heart failure," reports Rudolph. It is a
`very serious condition, especially in its advanced
`stages. The heart is unable to pump blood through
`the body, causing the energy levels of sufferers to
`drop dramatically. "The survival time for severe
`heart failure is significantly shorter than for some
`types of cancer," Rudolph points out. ”At present,
`the options for using drugs to treat this disease are
`limited. A lot of research needs to be done in the
`
`field," the cardiologist says. "If we could succeed
`in halting or possibly even healing pathological
`changes in the heart and blood vessels by means
`of regenerative therapy, it would be a major step
`forward."
`
`Developing innovative active substances to
`treat heart failure is one of Bayer's main areas of
`research. Several projects involving different
`treatment methods are currently in the advanced
`phases of clinical development. Furthermore,
`Bayer scientists in the cardiovascular research unit
`are working on novel active ingredients to treat
`severe diseases of the cardiovascular system such
`as coronary heart disease, stroke, thrombosis and
`pulmonary hypertension, as well as certain kidney
`diseases. "Cardiovascular diseases are a strategic
`priority for Bayer. Our pipeline covers a wide
`range of heart, circulatory and vascular diseases,
`for which patients and physicians are desperately
`waiting for further improved treatments," says
`Professor Andreas Busch, head of Drug Discovery
`in the Pharmaceuticals Division.
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 22 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 22 of 361
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`

`Bayer Annual Report 2015
`
`
`Life Science {I Magazine
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`A heart attack has severe
`repercussions. Patient
`Remigius Miill'er {right} has
`largely taken the advice of
`his cardiologist Dr. Wolfgang
`Steffen {below} to heart and is
`feeling well again.
`Patient Axel Vogei, by contrast,
`suffers from severe heart
`failure. He is receiving treat-
`ment from Professor Volker
`Rudolph, Chief Senior Physi-
`cian of the Cardiology Center
`at Cologne University Hospital
`(below right).
`
`
`
`Bayer also offers physicians and patients digital solu-
`tions to support drug-based treatments. For example,
`after registering, patients with atrial fibrillation can
`receive a daily text message reminding them to take
`their pills. "In the future, apps like this will offer even
`more possibilities," says Johannes Schubmehl, Chief
`Information Officer at Pharmaceuticals. One example
`is sending patient data to the attending physician.
`
`A study of this is currently being conducted in
`Canada on patients with pulmonary hypertension.
`Cardiologist Volker Rudolph believes in the future
`of digital apps in medicine. "Patients won’t need
`to make as many visits to the doctor's office, and
`we physicians will have faster access than ever
`before to critical results."
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 23 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 23 of 361
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`S
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 24 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 24 of 361
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`

`

`18 Bayer Annual Report 2015
`Magazine {I Life Science
`
`
`
`Itiillit)tt
`
`
`people woridwide were aged above so in 2015.
`By 2050, this figure will have doubled to
`
`approximately 2 billion — almost eve
`
`person on the planet.
`
`
`Source: UN report. World Population Prospects, 2015
`
`
`
`
`Whether yoga, a healthy diet, exercise orjusr
`a :‘eiaxing break with a foui'iiegged friend:
`There are plenty of options avaiiabie 10 those
`who want to stay fit weh‘ into old age, like 6.5.
`retirees Nam Carson and Henry Cohen {above}.
`
`
`
`WATSON LABORATORIES, INC. , Ex. 1077, p. 25 of 361
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`WATSON LABORATORIES, INC. , Ex. 1077, p. 25 of 361
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`

`

`Bayer Annual Report 2015
`
`
`Life Science If Magazine
`
`19
`
`Henry is an example which shows that being old doesn‘t
`automatically mean being sick. "But the rising life exper
`tancy also means a higher risk for numerous disorders.
`many of which are chronic conditions," says Dieter
`Weinand, member of Bayer's Board of Management and
`head of the Pharmaceuticals Division. Typical age—related
`disorders include cardiovascular diseases such as stroke
`and heart attacks, eye disorders and cancer. "We are
`always looking for new and highly specific therapeutic
`approaches to be able to provide even better help to
`patients in the future," explains Weinand. Accordingly,
`Bayer's scientists are concentrating on new therapeutic
`options for conditions such as heart failure, wet age-
`related macular degeneration, and prostate and lung can
`cer. The results of this research could make it possible
`for elderly people to live an active life for longer.
`
`in Delray Beach, there are regular information evenings
`on health issues. Dietary advisors and speakers from a
`number of different disciplines explain how senior citi-
`zens can stay fit for as long as possible, and how non
`prescription medicines can help them achieve that aim.
`These events are organized by Nora Gerson. "Many of my
`acquaintances and neighbors here suffer from classic risk
`factors such as hypertension and high cholesterol levels,
`which can be minimized through diet, exercise and an
`overall healthy lifestyle," says the 79—year-old.
`
`Nora leads a yoga group for participants aged between
`so and 93. Henry is one of her students, too. Nora stands
`with her legs firmly planted and folds her arms around