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`
`Key Data
`
`
`Change
`from 2015
`(9’0)
`
`2016
`
`I
`
`I
`
`I
`
`I _
`
`
`€ miition
`2015
`
`Bayer Group
`
`46.085 “mid—.1750 fl
`Saies
`
`0.573 w
`EBITDAi—"""
`__
`'
`
`WWWWMW"""""_
`10.256
`+102
`
`EBITDA margin before special lterns‘ Wmmmmmmm
`”I
`22.3% I
`
`EBIT‘
`7'
`'
`‘
`"
`_
`5241
`
`EBIT before special items‘
`”w
`?.050
`
`income before income taxes
`.
`.
`H
`_.._............
`..
`5,236
`
`Net income (from continuing and discontinued Operations]
`7 7 W
`I H ..
`..
`4,110
`.
`.
`
`Earnings per share (from continuing and discontinued operations) (6‘
`4.97
`Core earnings per share (from continuing operations) [6‘ 7
`682
`Net cashp10yided by operating activities (from continuing and discontinued operations)
`6.890
`
`Net financial debt
`
`
`
`' H23
`+152
`+1271
`+102—
`+ 9.5
`+1.5
`+ 319
`, 32,5
`
`
`
`W
`
`+ 27
`
`Cap
`éQE'éndiiures as per segment table
`
`_
`,,
`52.3121 Ad
`
`0.0
`2.230
`'
`2:06? '
`'
`Total dividend payment
`
`Dividend per share (a
`.
`“M w
`2.50 7 N _' 770 mwtié
`
`
`.—
`Innovation
`W W 7
`7
`
`4.274
`Research and development expense:
`4666
`+ 9.2
`
`Ratio of R&D expenses to sales: Pharmageuficas(%)
`15.0
`I‘m-17.0
`
`._.
`_________
`Ratio of R810 expenses {0 sales , Crop Science 1%)
`
`
`
`14.?53
`Employees in research and tie-irelopment
`+ 3.13
`
`
`Emptoyees
`-------------------
`
`Number ”out-”employees? (Dec. 31)
`116.600
`115T200
`—1.2
`
`Personnel expenses (including pension expenses) (E million)
`11.1?6
`11 .35?
`+1.5
`
`Piani'ion of women in senior management 1%)
`28
`
`Proportion of employees with health insurance (Va)
`96
`98
`
`Fluctuation (voluntaryltotali 1%)
`_____“ “sififfié 4 5112}; _"
`
`Hours of vocational and ongoing training per employee-mmm"
`.
`I
`I
`I
`I
`I
`H 200
`22.1
`I
`
`
`Safety & Environmental Protection
`
`Recordable incident Rate-(RlRi for Bayeremployees
`0.42 7
`
`Loss of Primary Containment Incident Rate (LoPC—IR)“
`0.22
`
`Total energy consumptiohmt'terajoulesi
`83.182
`Energy efficiency 0111111111104 W
`5.34 . W .
`Total greenhouse gas emissions (CO? equivalents in miliion 115
`9.71
`Specific-greenhouseigas emissions (CO: equivalents in tr'manufactured sales volume in t),
`
`according to the market-based method‘5
`1.69
`1.54
`— 8.9
`
`Hazardous waste generated (thousand t)
`541 W
`54?
`+ 1.1
`
`Water udé't'rn'i'I'i'idanai
`346
`7330
`— 4.5
`2015 figures restated; figures lor 201272014 as last reported
`‘ For definitions of the indicators see Chapter 2.4
`2 Employees calculated as fullntime equivalents tFTEs)
`3 Number of incidents per 200.000 working hours in which chemicals leak from lhetr primary container. such as pipelines, pumps. tanks or drums
`‘ Quotient of totai energy consumption and manufactured sales volumE; Lile Sciences only
`5 Direct emissions from power plants. waste incinerators and production plants and indirect emissions from external suppties of electricity. steam and
`refrigeration (according to the market-based method); portfolio-adjusted in accordance with the GHG Protocol
`*" Life Sciences without Currents
`
`_
`7.2.2.2.
`
`
`
`— ?.1
`+ 45.5
`+1.6
`+5.8
`+ 1.6
`
`+105
`
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`WATSON LABORATORIES, INC. , Ex. 1078, p. 3 of 344
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`At a Glance
`
`
` —
`Sales1
`EBITDA Before Special Items1
`Net Income‘
`
`+3.50;
`
`+1029:
`
`
`2015
`
`2016
`
`
`
`Core Earnings per Share1
`
`Supplier Management3
`
`Investment in
`Research and Development
`
`+7 30/
`
`I
`
`O
`
`€47 billion
`
`+ 9.2% Compared with 2015 98%
`
`of all strategically important suppliers
`evaluated since 2012
`
`2015
`
`2016
`
`
`
`_ W
`
`Specific Gfeenhouse Gas Emissions“
`
`Work-Related Accidents
`
`Proportion uf Women
`in Senior Management
`
`-_ l 8%
`
`@”7.1
`
`%
`
`29%
`
`
`
`‘ Change from 2015: 2015 figures restated ? Currency- and portfoliuiadiusled 3 Life Sciences 4 Lite Sciencas without Currenta
`
`
`
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`
`Chairman’s Letter
`
`innovation is our
`
`core competence
`
`flew slauuatau; outer
`
`Wuds °l 30w“:
`
`i am pleased to present to you Bayer’s annual report for fiscal 2016.
`
`it has been a very exciting and intensive year ~— for me personally as well
`
`because I became Chairman of the Board of Management in May.
`
`I would like to thank the entire Board of Management, which started
`
`working in its new constellation at the start of last year, for its commit-
`
`ment to the company. Creating an integrated organizational structure
`
`and appointing the heads of the divisions to the Board of Management
`
`have proven to have been the right steps at the right time. We have a
`
`very good management team that works extremely well together.
`
`I would also like to thank the members of the Supervisory Board for our
`
`trust—based cooperation and all our employees, who displayed great
`
`commitment and personal dedication in making 2016 another successful
`
`year for Bayer.
`
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`In 2016, we again substantially raised both sales and earnings and thus
`
`posted a new record for our operating performance. Group sales
`
`increased by a currency— and portfolio—adjusted 3.5 percent to €438 bil—
`
`iion and clean EBITDA rose by 10.2 percent to €113 billion. Core earn—
`
`ings per share advanced by 7.3 percent to €7.32.
`
`At Pharmaceuticals, sales rose by an encouraging 8.7 percent on a
`
`currency— and portfolio-adjusted basis, with our five key growth
`
`products again making a significant contribution to growth. XareltoTM,
`
`EyleaTM, XofigoTM, StivargaTM and AdempasTM posted combined sales
`
`of €54 billion, compared with €42 billion in 2015. We raised our
`
`assessment of the combined peak annual sales potential of these five
`
`products from our previous estimate of at least €715 biilion to more than
`€10 billion.
`
`Adjusted for currency and portfoiio effects, sales at Consumer Health
`
`advanced by 3.5 percent. This division posted substantial gains in Latin
`
`America and Asia/ Pacific in particular.
`
`Despite a weak market environment, Crop Science sales matched the
`
`prior—year level. Seeds expanded business significantly and Environmen—
`
`tal Science also posted gratifying sales gains. Animal Health grew sales
`
`by a currency— and portfolio~adjusted 4.8 percent.
`
`Covestro remains fully consolidated on account of our continued
`
`majority interest of around 64 percent at present. This business posted
`
`currency and portfolio—adjusted sales on a level with the prior year.
`
`We are very pleased with the way Covestro has developed since its
`
`stock market listing in October 2015. it confirms that separating the two
`
`enterprises was the right move for both of them. Thanks to its very
`
`good business performance, Covestro has successfuily established a
`
`good position on the capitai market in its first year of independence;
`
`Bayer has excellent growth perspectives resulting from its focus on the
`
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`
`
`Bayer CEO Werner Baumann
`
`Life Sciences. it remains our intention to divest our entire interest in
`
`Covestro in the medium term.
`
`A particular highlight of 2016 was the agreed acquisition of Monsanto,
`
`which is intended to further strengthen Bayer as a Life Science company
`
`and create substantial additional value in the long term for you, our
`
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`stockholders, through more innovation, stronger growth and greater
`
`efficiency. The two businesses are highly compiementary, both in terms
`
`of their geographical fit and their product portfolios.
`
`it is a good step for Bayer as a whole since the two companies” com—
`
`bined expertise will improve our ability to help address one of the most
`
`urgent issues of our time: how to feed the some ten billion people who
`
`are expected to be living on our planet by 2050.
`
`Together with Monsanto, we would be better able to provide farmers
`
`worldwide with a product offering that is tailored to their needs and
`
`offers them genuine added value: from the right choice of seeds through
`
`seed treatment to controlling weeds, pests and plant diseases. With
`
`regard to the increasing digitization of farming, Monsanto will give us
`
`valuable expertise.
`
`We are confident that we will be granted all the necessary antitrust
`
`clearances enabling us to close the transaction before the end of 2017.
`
`The acquisition is to be financed through a mix of debt and equity. in
`
`November 2016, we successfully placed mandatory convertible notes as
`
`a first equity measure in this connection.
`
`Despite the large investment being made to acquire Monsanto, we
`
`will continue to pursue organic growth in Pharmaceuticals, Consumer
`
`Health and Animal Health. The necessary funding will also be available
`
`for investments at our sites as well as for smaller acquisitions and
`
`in—licensing.
`
`It goes without saying that this applies to research and development as
`
`well. in 2016, we again increased R&D spending in the Life Science
`
`areas to 64.4 billion. And we are planning a further increase in the cur—
`
`rent fiscal year because innovation is our core competence. In the Life
`
`Science areas in particular, there is great demand for new products
`
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`
`and solutions. For example, better treatments are needed for conditions
`
`such as cancer and cardiovascular disease. Likewise, solutions are
`
`required to achieve the necessary increase in agricultural productivity
`
`and feed the growing world population. In addition, investments in self—
`
`care are designed to keep our aging population healthy and contribute
`
`to the sustainability of pubiic health care systems around the world.
`
`Our investments in research together with targeted in-licensing are the
`
`basis for our long—term growth — as shown by the projects which have
`
`made it into our development pipelines. At Pharmaceuticals, for example,
`
`we estimate the combined peak annual sales potential of six promising
`
`product candidates in the mid— to late—stage pipeline to be at least €6 bil—
`
`lion. And the combined peak sales potential of Bayer’s crop protection and
`
`seed technology pipelines should total more than €5 billion from products
`
`that have been or will be brought to market between 2015 and 2020.
`
`Today, any company wishing to remain at the cutting edge of scientific
`
`and technological development needs excellent partners. For this rea—
`
`son, we maintain a network of collaborations and strategic alliances with
`
`leading universities, public research institutes, partner companies and
`
`start—ups. Last year, for example, we concluded a cooperation agree—
`
`ment with Danish company FaunaPhotonics. Together we are seeking to
`
`develop novel sensor solutions which will improve farmers’ ability to
`
`monitor the development of pest populations and thus control pests
`
`more effectively.
`
`Another example is the joint venture named BlueRock Therapeutics
`
`we established with Versant Ventures with combined funding of
`
`US$225 million to develop stem cell therapies for curing a range of
`
`diseases. BlueRock Therapeutics is the second large investment made
`
`by the Bayer Lifescience Center, which has the mission to rapidly
`
`uncover, encourage and unlock fundamental scientific breakthroughs in
`
`medicine and agricuiture.
`
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`
`We are aware that our employees are the basis for everything we do.
`
`it is their creativity, knowledge and commitment which shape Bayer’s
`
`performance ability. We therefore invest a great deaE of effort in recruit—
`
`ing and retaining the best employees for Bayer. To this end, we provide
`
`an attractive working environment and have built a creative corporate
`
`culture that is characterized by diversity and internationality, customer
`
`focus, experimentation, collaboration and trust.
`
`Another reason our people enjoy working for Bayer is because they
`
`know that sustainability and social responsibility are firmly anchored in
`
`our corporate culture. We have committed to upholding the basic tenets
`
`of sustainable development and the Ten Principles of the United Nations
`
`Global Compact. Each year, we contribute to society through our
`
`wide—ranging humanitarian commitment and social sponsorship activi-
`
`ties. One example of this is our range of initiatives aimed at supporting
`
`refugees living in Germany. At our sites in Leverkusen and Berlin, we
`
`have established projects to prepare young refugees for subsequent
`
`vocational training.
`
`Our commitment to social responsibility is also shown through our daily
`
`coilaboration with smallholder farmers across the world. We support
`
`them through numerous initiatives, especially in Africa and Asia. Our
`
`expertise helps them to grow more food and market their produce more
`
`effectively — thus generating a higher income.
`
`As you can see, Bayer is making good progress in every respect. How—
`
`ever, we need a reliable regulatory environment if we are to remain suc—
`
`cessful in the long term. To this end, legislators will have to make clever
`
`decisions focused on growth and prosperity. We need a Europe that is
`
`flourishing and fit for the future so we will have to inject new strength
`
`WATSON LABORATORIES, INC. , Ex. 1078, p. 10 Of 344
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`
`
`into the European ideal. The debate on how to achieve this has only just
`
`begun. We view it as a matter of course that we as a company should
`
`actively, openly and transparently contribute to the discourse on impor—
`
`tant social and political issues.
`
`On behalf of the entire Board of Management, 1 would like to thank you —
`
`our valued stockholders w for the continuing confidence you have placed
`
`in Bayer.
`
`Sincerely,
`
`wan-4 BdMU‘OLOLtA,
`
`Werner Baumann
`
`Chairman of the Board of Management of Bayer AG
`
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`
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`WATSON LABORATORIES, INC. , Ex. 1078, p. 13 of 344
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`" A'I'o LABORATORIES, INc. , Ex. 1078, p. 14 of 344
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`WATSON LABORATORIES, INC. , Ex. 1078, p. 14 of 344
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`
`
`Experimentation
`
`
`
`Customer Focus
`
`Collaboration
`
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`
`
`
`Experimen—
`tation
`
`Passion to innovate: research SCiei’itiST
`Lara Kuhnke from Bayer’s Pharmaceuticals
`Divisaon in at Berlin laboratory,
`
`
`
`
`
`
`Trust
`
`
`Patient Prasanna Oommen
`trusts her physician and
`Bayer’s innovative medicines.
`
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`
`
` Customer
`
`Focus
`
`Diisseldorf pharmacist Petra Jeremias
`advises a cusiomer.
`
`OoHabommon
`
`Working toward a common goal:
`Jose-Miguei Robles-Turiei from Baysr‘s Crop Science Division
`and coiieague Mira Begic in a meeting.
`
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`
`1 2
`
`Magazine
`
`Bayer Annual Report 2016
`
`“W" Research lasheshave bec me
`
`so compiex tE1at no one scEentist
`alone is ableEEo resolve theE11.
`Dr. Fluth Wellenreuther, aliiance manager at the DKFZ
`
`Fighting cancer
`
`Oncology research at Bayer is committed to improving the lives of
`cancer patients. Bayer’s researchers are working together with external
`partners to develop new therapeutic approaches to this disease.
`
`WATSON LABORATORIES, INC. , Ex. 1078, p. 18 of 344
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`
`
`Bayer Annual Report 2016
`
`
`
`Magazine 13
`
` '
`
`‘NWAW
`
`In the Heidelberg
`laboratory run
`jointly by Bayer
`and the German
`Cancer Research
`Center (DKFZ):
`Alliance manager
`Dr. Ruth Wellen-
`reuther (left)
`and Dr. Rafael
`Carretero (right),
`
`You will find a vldeo of the two Heidelberg-based
`cancer researchers in our Online Annual Reporl at
`
`www.cayer.com/ar—cancer
`
`We develOp therapies that enable the patient’s
`
`body to detect cancer cells and then defeat
`
`them itself.
`
`Dr. Rafael Garretero, cancer researcher at Bayer
`
`
`
`
`
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`
`
`14
`
`Magazine
`
`Bayer Annual Report 2016
`
`04)
`o
`
`Antibody-drug conjugates
`Certain proteins occur more irequently on
`the surface of cancer celis than in healthy
`cells. Bayer researchers are deveiopihg
`molecules called antibodyrdrug con-
`jugates which recognize these proteins.
`Like a Trojan horse. they dock onto the
`cancér cells and destroy them with a cell
`toxin. Arttibodyxthorium conjugates work
`in a similar way and transport radioactive
`theriui‘nrQQ? to the cancer cells. The re-
`suiting energy‘rich atpha particles destroy
`the cancer cells. By using different anti
`bodies. comugates can be developed [or
`various tumor types.
`
`Areas of oncology research at Bayer
`
`
`
`Blocking oncogenic signaling pathways
`in specific tumor types
`The multiplication oi cancer cells is to be
`baited by intervening in their key moiecutar
`processes. One approach aims to block the
`signaling pathways which prevent cancer
`cal! death and often result in mutations,
`while another approach seeks to exploit the
`differences in the metabolic activity of tumor
`cells. A third approach is investigating can-
`cer stem cells that may result in the develop-
`ment ol resistance mechanisms and the fail-
`ure of chemotherapy and radiation therapy.
`And a further approach is focused on the
`epigenetic changes which play a role ll’i ma-
`lignant cancers. Bayer scientists are working
`to understand these processes better so
`they can reverse harmful modifications in
`diseased cells.
`
`lmmuno-oncotogy
`Every day. cancer coils are formed in the
`human body because ot a genetic predis-
`position or as a result of exposure to Ciga-
`rette smoke, UV radiation or other envi-
`ronmentat intluences. They are usually
`eliminated by the immune system‘s cells.
`in certain cases. however. they can evade
`the immune response and become a
`harmful tumor. Bayer researchers are
`working mainly in collaboration with scien-
`tists from the DKFZ on approaches lead-
`Ing to a reactivation of the immune system
`to eliminate the tumor cells without effect
`ing healthy nonturnoral cells. The immune
`system‘s memory function may result in
`long-term therapeutic success.
`
`he moment my best friend was told his
`mother had died is one I'll never forget.
`We were at school together at the time,"
`remembers Dr. Rafaei Carretero. Rafael
`
`and Francisco were like brothers. They
`lived close to each other in the same neighbor
`hood in Granada, Spain, played soccer in the
`street and spent the Summers together with their
`parents. either hiking in the Sierra Nevada or
`
`We are working to develop innovative treat-
`ments for patients with serious diseases such
`as cancer in order to extend their lives and
`
`improve their quality of tits.
`
`Professor Andreas Busch. head of Drug Discovery at Bayer
`
`on the beach at La Herradura. But then Rafael
`
`experienced how his best friend's warmrhearted
`and cheerful mother suffered the side effects of
`chemotherapy and radiation therapy before dy—
`ing , much too young — of breast cancer. “That
`hit me really hard and was one of the reasons
`why I decided to devote my life to fighting cancer
`— so that other people would be spared this
`fate," says the Bayer researcher.
`
`Carretero is now 33, a molecular biologist and sci—
`entific manager of a laboratory run jointly by Bayer
`and the German Cancer Research Center (DKFZ).
`Its 12 employees on the sixth floor of the DKFZ's
`state-of-the—art building in Heidelberg. Germany,
`are conducting research to determine how the
`body's own immune system can be reactivated to
`combat tumor celis. This approach was also the
`subject of Carretero‘s PhD at the Hospital Univer-
`sitarlo Virgen de ias Nieves in Granada. The battle
`against cancer has been the common thread
`through his life. "We want to develop therapies
`that enable the patient‘s body to detect cancer
`cells and than fight them itself without harming
`healthy celis at the same time," he explains.
`
`What’s special about the laboratory in Heidelberg
`is that scientists from both Bayer and the DKFZ
`work side by side. "This allows us to pick up on
`novei research findings as early as possible so
`that they can be channeled into drug develop-
`ment,“ explains Dr. Ruth Welienreuther, ailiance
`manager at the DKFZ. “Research issues have
`become so complex that no one scientist alone is
`able to resolve them. Our scientists identity po-
`tential new drug targets, and Bayer has extensive
`libraries of substances and antibodies. The two
`
`WATSON LABORATORIES, INC. , Ex. 1078, p. 20 of 344
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`WATSON LABORATORIES, INC. , Ex. 1078, p. 20 of 344
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`
`Bayer Annual Report 20m
`
`Magazine
`
`15
`
`parties' respective expertises complement
`each other ideally, which enables us to reach our
`objective more quickly."
`
`The joint laboratory is one aspect of a partner-
`ship that has been in existence since 2009.
`Wellenreuther was involved in developing the
`framework for the collaboration. “This is an alli—
`ance between equals. We clarified all the struc—
`tural and legal issues right at the beginning. so
`when we identify a new target we can move
`straight on to searching for suitable active ingrer
`clients." The partnership has already been suc—
`cessful: The first active ingredient to treat brain
`tumors and leukemia has been undergoing clini-
`cal testing in patients for several months now.
`The substance recognizes proteins that are
`found only in cancer cells in a subset of patients,
`an approach that could enable the development
`of effective. patient-specific therapies.
`
`"We are working to develop innovative treat-
`ments for patients with serious diseases such as
`cancer in order to extend their lives and improve
`their quality of life." says Professor Andreas
`
`Busch. member of the Executive Committee
`of Bayer's Pharmaceuticals Division and head
`of Drug Discovery. "Our particular strength at
`Bayer is that we have strong expertise in identi—
`fying active ingredients and taking them through
`all phases of clinical development up to and
`including drug approval, for the benefit of the
`patients.”
`
`In the battle against cancer, Bayer is pursuing
`three main approaches (see page 14): blocking
`signaling pathways that lead to uncontrolled cell
`division; selectively docking molecules onto
`cancer cells to trigger their targeted destruction;
`and reactivatlng the immune system to eliminate
`cancer celts itself. This latter approach is the
`focus of the research by Carretero and his cola
`leagues. “Our understanding of cancer is con
`stantly improving, but there are still plenty of
`unanswered questions,” says Carretero, before
`turning his attention to the next test findings
`from the laboratory. “Our goal is to make cancer
`curable or be able to transform it into a chronic
`disease by providing therapeutics that keep
`tumor cells in check."
`
`
`
`8. 2 mil Eon
`
`people died of cancer in 2012,
`according to the World Health Organiza—
`tion (WHO). In the same year. 14.1 million
`people were newly diagnosed with cancer.
`
`years
`in 2012, according to WHO, 32.6 million
`people worldwide had been living with
`cancer for five years.
`Source: international Agency for Research
`on Cancer, World Health Organization
`
`
`
`Dr. Rafael Carreterc (left) from Bayer in conversation with Dr. Ruth Wellenreuther
`and Dr. Stefan Pusch from the German Cancer Research Center in Heidelberg,
`—_———— Germany.
`
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`Magazine
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`17
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`
`
`a common disorder
`
`Between 10 and 20 percent of people worldwide
`(with regional variations) have upper respiratory
`allergies, the symptoms of which often impact their
`daily fives. Bayer markets well—known and easy—
`to—use products to effectively relieve these allergy
`
`symptoms.
`
`ulu knows she shouldn‘t be on the sofa. “Get down from therei”
`
`commands Jennifer T. Lulu understands straight away. The black
`bulidog mix with the trusting eyes knows she has done something
`wrong and shoots a guilty glance at her owner before exiting the
`room. All that remains on the sofa are black dog—hairs, and until a
`few years ago this would have been a major problem. Jennifer is allergic to
`dogs and cats.
`
`it took her a while to realize this. When she was a student at New York
`
`University, she caught a cold - or at least. she thought that was what she
`had. The symptoms suggested as much, but they refused to go away even
`after several weeks. An internist in Manhattan correctly diagnosed the
`then 22—year-old’s condition: Her immune system overreacts to normally
`harmless substances. Like many other sufferers, she is allergic to pollen
`and animal hair. “Finally i knew what was going on. But it was also a
`shock. I grew up spending tons of time outdoors with my German Shep—
`herd, a Yorkshire Terrier and a Labrador. Now I could no longer even visit
`friends who had pets."
`
`Jennifer quite simply doesn’t have time for allergies. The single mother
`lives with her daughters Molly (9) and Lindsey (6) about an hour by car
`from New York City. The 42—year-old's days are tightly scheduled. The
`alarm clock rings shortly before 7. Mom makes breakfast, gets her daugh—
`ters ready for school and then goes jogging or heads over to her gym or
`her yoga school, both of which are only a few minutes away. “i don't have
`time for long drives.” Then she starts work in her office adjacent to her
`kitchen. Jennifer is vice president of an association that helps students
`repay their loans. Her clients attend colleges on the East Coast of the
`United States, from Maine to Maryland. Once a month, she travels to the
`association‘s headquarters in the Midwest.
`
`Allergies and their treatment
`with antihistamines
`
`
`Allergen
`
`0‘
`
`
`
`
`receptor
`\
`§ ,77777 Tissue cell
`
`
`
`An allergy is a hypersensitive reaction
`of the body's immune system to ordinarily
`harmless substances known as allergens.
`The immune system responds to these
`substances as if they were dangerous.
`They trigger a defense reaction by the body
`to, for example, pollen protein. Foilowing
`initial contact with the allergen, the body
`develops corresponding antibodies.
`
`i — If an allergen comes into contact
`with the body again, it is recognized by
`the mast cells of the body’s defense
`system, which are found especially in
`the mucous membranes.
`2 7 Already sensitized by the initial Contact,
`the mast cells have formed large num-
`bers of special receptors for the aller-
`gen. Mast cells release histamine, which
`serves as a messenger for the sur-
`rounding tissue.
`3 — Histamine then docks onto the recep-
`tors in the tissue cells, which then
`trigger the immune response. The body
`reacts with allergy symptoms.
`4 — Antihistamines like loratadine, the
`active substance in ClaritinTM, block
`histamine from docking onto its recepA
`tors, thereby hindering the cascade
`triggered by allergens.
`
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`Magazine Bayer Annual Report 2016
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`Regular relaxation:
`as often as possible
`
`Jennifer T. attends a
`
`yoga class with
`
`instructor Fiona.
`
`
`
`
`
`Despite her very busy professional life. Jennifer is also a class mom at her daughters‘ school
`and a Girl Scout Daisy Troop leader. She lives an active life despite her allergies — and new
`she has Lulu, a two-year-old crossbreed she got from an animal sanctuary. "I want my
`daughters to grow up with a pet. Dogs provide unconditional love and teach us how to take
`responsibility. That’s important to me."
`
`For Jennifer, spring is a particularly difficult time. “I used to have to sneeze all the time. my
`nose would run." She tried out lots of things to control her allergy symptoms. “Then i started
`using ClaritinTM. it’s exactly right for me. i can be there for my children and i can do my job
`and live my life without my aliergies holding me back."
`
`"We Know the symptoms that affect allergy sufferers: itchy, watery eyes, sneezing, a runny
`or itchy nose. They can have an enormous impact on their daily routine and quality of life.”
`says Jay Kolpon, Global Category Business Unit Leader, Allergy. "We want to relieve sufferers
`from these symptoms. Our purpose is to enable them to embrace life with all their senses.
`Jennifer’s story is a wonderful example of how Our products help people live a better life."
`
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`Bayer Annual Report 20l6
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`Magazine
`
`19
`
`
`
`C24h
`
`Round the clock
`Bayer's ClaritinTM family of products is available in more
`than 100 countries worldwide. ClaritiriTM is the market
`leader in the world‘s largest OTC market. the United
`States. Indications and trademarks vary from country to
`country. In the United States, CiaritinTM provides 24—hour
`nondrowsy relief from runny nose. sneezing. itchy.
`watery eyes. and itchy nose or throat, helping suflerers
`to actively enjoy their daily lives both indoors and out-
`doors. Claritin-D'M12- and 24-hour products retieves
`the same symptoms as Claritinm, pius nasal congestion
`and sinus congestion and pressure.
`
`
`Allergies are
`on the rise
`
`Lip to 30 percent of aii O O O
`adutts suffer from allergic
`rhinitis according to the
`World Allergy Urganiza- m m m
`tion and these figures are
`set to rise,
`
`
`Best-selling
`product
`CiarilinTM is the Consumer
`Health Division‘s bestrselling
`brand globally.
`
`i899
`
`Consumer Health can look back on a long
`tradition in the setf—care market. It began
`in 1899 with the launch of Aspirinm.
`Bayer‘s worlderenownad iconic brand.
`
`
`Family time in the
`garden: Jennifer with
`daughters Molly (right)
`and Lindsey (left) on
`their climbing tree —
`Lulu the dog often
`
`joins in (photo at left).
`
`Our video shows how Bayer‘s nonprescription
`medicines help patients lead an active life:
`www.bayer.com/allergy
`
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` fig;- bu'frthe amount of
`
`
`9801- IS' sfir'm'kifig'.” Ag'r'icuit'ural
`_
`
`ave 0" increase if we want to Safe—
`
`plthIthe'Edng term. Digitalization
`
`s "deploy our resources efficientiy
`
`__ _.éh‘a‘bling’ farmers to get't‘he best out
`withErhin'imal'eh'virenmental. impact.
`_
`I
`
`
`
`
`
`
`
`v we The photo shoWs fe
`.
`accessed by fermerson l
`' nager Ediney Afonso Dias m a seybean field in Braz .
`
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`Magazine
`
`21
`
`
`
`umming quietly, the drone hovers over the
`field, the lens of its camera surveying the
`ground below it. Not 200 meters away, a
`twin—engined Piper stands in its hangar. The
`propeiler plane is much faster, but the drone
`is better for this job. The remoteacontrolled aircraft's
`camera delivers high-resolution images from every core
`her of the soy fields. much better than the Piper could.
`If a problem comes up, Ediney Afonso Dias can react
`immediately. The Brazilian agronomist can then take
`targeted action to control weeds. fungal diseases and
`pests without having to treat the entire field. “Cutting—
`edge, sustainable agriculture needs lots of accurate
`information." says Dias. "Now we don’t have to use
`crop protection agents on large areas when only cer-
`tain sections are affected. That‘s good for us farmers
`and for the environment,"
`
`Dias. a graduate of the Universidade Estadual de
`Goias in Brazil. has been working on Francisco and
`Charles Godoy’s farm near the town of Catalao in the
`South American country for four years. A look at his
`office reveals the 24—year—old's structured approach to
`farm management, On the walls are whiteboards for
`each of the ten farms belonging to the Agricola Godoy
`company. which have a total area of 12,500 hectares.
`Each farm is divided into plots. For each plot. Dias has
`noted in detail how the soil was prepared for sowing.
`which soybean variety was planted. and what fertiEizers
`and crop protection products have been deployed. The
`information on the walls is the roadmap for a success
`fui harvest in 2017.
`
`DEas' desk overlooks the barn used to store the har—
`
`vest. which is currentiy stiii empty as the big harvesters
`wait for their turn to get to work. Everything is welt
`prepared for achieving ambitious objectives. Dias plans
`to increase this harvest’s yield by around five percent.
`without having to use any additional farmland.