Change of boss – Bill Anderson succeeds Werner Baumann

Bayer management circles have strongly denied that the faster change that has now been announced is related to the latest attacks by activist investors. Several funds, including those from Germany, had called for a speedy replacement of the Bayer top position with a candidate from outside the company in the past few weeks.

Bayer has been in contact with Anderson since autumn 2022, but at the same time has screened dozens of other candidates, the circles said. His appointment was the result of a clearly structured selection process. Internally, it was always the clear goal to be able to present the successor solution at the next general meeting at the end of April.

After the CEO change was announced, Bayer stock shot up by six percent to €62. The reaction shows that many investors are hoping for strategic changes at Bayer – including a possible reorganization of the integrated pharmaceutical and agrochemical group. The fact that a proven top pharmaceutical manager is now taking the helm strengthened expectations on Wednesday that Bayer would become a flawless drug manufacturer in the medium term.

Ability for transformation processes

According to sources in the circles, the decisive factor in Anderson’s choice was that he worked in a top global position and demonstrated his ability for transformation processes. It was important to the Supervisory Board that Bayer be led by a scientist again in the future. Anderson emphasized that Bayer interests him in all its diversity. He should continue to develop the business in the existing structure.

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“Bill Anderson’s mission is clear: Bayer should develop its full potential and create sustainable value for our shareholders, farmers, patients, consumers, employees and all of the company’s stakeholders,” Winkeljohann was quoted as saying in the official statement.

As a pharmaceutical expert, Anderson’s main task will be to strengthen Bayer’s main prescription drug business over the next few years. The group has to put up with several patent expirations and already has some good new developments on the market. But above all, Bayer’s strong focus on high-risk cell and gene therapy must be right.

However, the new boss is inexperienced in Bayer’s equally large Crop Science division with its agrochemical business. Operationally, this division is doing well after the Monsanto purchase, but the takeover brought in billions in legal costs for Bayer due to the wave of glyphosate lawsuits. Bayer has still not finally been able to shed this burden. Experience with the US legal system was one of the criteria in the selection process. Anderson has that as a pharmaceutical manager who has worked in the USA for many years.

Due to the legal consequences of the Monsanto takeover, the incumbent CEO Baumann had come under increasing criticism from shareholders in recent years. Chairman of the Supervisory Board Winkeljohann thanked Baumann for 35 years of service to the group. “Today, the company is a leading life sciences company with outstanding innovative capabilities in the areas of health and nutrition,” he said. “And the recent successful operating performance is clear evidence that Bayer is on extremely strong foundations.”

“New chapter for years to come”

The Group expects that Anderson will quickly present his first strategic ideas after the induction period, probably before the end of this year. He should open a “new chapter for the coming years” at Bayer.

The decision was well received by Bayer investors on Monday evening: “Bill Anderson is a very good choice for Bayer and could be the liberation investors have been waiting for,” said Markus Manns, fund manager at Union Investment. “He has the necessary network and know-how in the USA to make Bayer more innovative. Anderson will likely get a huge leap of faith from many investors when he takes office.”
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