Bayer secures US$3.4B equity injection from Apollo for LARC contraceptives portfolio

GERMANY—Bayer has agreed to sell a minority stake in its newly established long-acting reversible contraceptives (LARC) business to global asset manager Apollo for €3 billion (US$3.4 billion).

The deal will provide fresh capital while allowing the German life sciences company to maintain full operational control of the business.

The agreement gives Apollo-managed funds and affiliates a non-controlling interest in a newly created entity that will hold Bayer’s LARC portfolio.

The business includes the hormonal intrauterine devices (IUDs) Mirena, Kyleena and Jaydess, as well as the contraceptive implant Jadelle.

The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals and customary closing conditions.

Even after completion, Bayer will retain a majority stake and continue to oversee the unit’s operations.

The business will also remain part of the company’s Pharmaceuticals Division and continue to be consolidated in Bayer’s financial results.

Strengthening Bayer’s balance sheet

Bayer said the investment will reinforce its capital structure at a time when the company faces higher liquidity needs linked to bond maturities and ongoing litigation.

Chief Financial Officer Dr Judith Hartmann described the transaction as a strategic financing solution that strengthens the balance sheet without affecting one of Bayer’s core pharmaceutical businesses.

She said the agreement improves the company’s financial flexibility by enabling it to manage debt repayments and legal obligations while continuing to invest in its long-term growth strategy.

The financing comes after years of costly legal battles over Bayer’s glyphosate-based herbicide Roundup, which the company acquired through its US$63 billion purchase of Monsanto in 2018.

Bayer continues to defend the product against claims linking it to cancer, although the company maintains that regulatory authorities have consistently found glyphosate safe when used as directed.

Pharmaceutical growth remains a priority

The Apollo transaction follows several strategic moves aimed at reshaping Bayer’s pharmaceutical business.

Last month, the company completed its acquisition of Perfuse Therapeutics in a deal worth up to US$2.45 billion, securing full rights to PER-001, an investigational treatment for glaucoma and diabetic retinopathy.

Bayer believes the acquisition will strengthen its ophthalmology pipeline and complement blockbuster eye medicine Eylea.

The contraceptives business has also become one of Bayer’s fastest-growing pharmaceutical franchises.

Sales of its LARC portfolio increased by 12.5% in 2025 to approximately €1.37 billion (US$1.57 billion), driven largely by strong demand in the United States.

The agreement reflects a broader trend across the pharmaceutical industry, where companies are increasingly pursuing acquisitions, licensing agreements and strategic financing deals to strengthen balance sheets, expand product portfolios and accelerate long-term growth.

According to GlobalData‘s Pharmaceutical Intelligence Center, the total value of licensing agreements and acquisitions rose by 40% and 260%, respectively, during the first quarter of 2026 compared with the same period in 2025.