Bayer (ETR: BAYN) has secured EUR 3.0 billion in equity capital from Apollo Global Management (NYSE: APO) through a minority stake in a newly established entity holding its long-acting reversible contraceptives business, a structure designed to strengthen the German company's balance sheet without relinquishing operational control over a core pharmaceutical franchise. The transaction addresses near-term liquidity requirements arising from bond maturities and ongoing Roundup litigation costs, while preserving Bayer's ability to continue executing its pharmaceutical growth strategy.
Under the agreement, Apollo-managed funds and affiliates will acquire a minority, non-controlling stake in the newly created entity, which will hold Bayer's LARC portfolio. The portfolio consists of Bayer's established long-acting reversible contraceptive products, led by Mirena, together with Kyleena, Skyla/Jaydess and Jadelle.
Bayer retains a majority stake and full operational control; the LARC business will continue to form part of the Bayer Pharmaceuticals Division's core business, and the newly established entity will remain fully consolidated in Bayer Group's financial statements. The transaction is expected to close in Q3 2026, subject to antitrust authority approval and customary closing conditions. No milestone payments, royalties, or contingent value rights are associated with the structure; the sole disclosed financial term is the EUR 3.0 billion upfront equity infusion.
The LARC portfolio underpinning the deal consists entirely of commercially approved, revenue-generating products with established global market positions. Mirena, the most commercially advanced asset, delivers localized levonorgestrel to suppress the endometrium and thicken cervical mucus, providing contraception for up to eight years and carrying an additional indication for heavy menstrual bleeding. Kyleena and Skyla/Jaydess offer lower-dose hormonal IUS options across shorter durations, broadening the portfolio's addressable patient population. Jadelle, a two-rod subdermal implant providing up to five years of contraceptive protection, is distributed primarily in low- and middle-income countries and holds WHO prequalification. The transaction's value is therefore derived from the franchise's existing cash-flow profile rather than from pipeline upside.