Heiko Schipper, 48, is set to join Bayer from March 2018. He will be replacing Erica Mann. Schipper will have to stem the flow of losses from Bayer’s non-prescription drugs business and manage the growing preference by consumers to shop online for drugs, which is a boon and a bane.
In efforts aimed to stemming the loss of revenue from its health division, Bayer has has hired the head of Nestle’s baby food business to head its consumer health division from March 2018.
Nestle’s Heiko Schipper, 48, is set to join Bayer’s board from March 1, 2018, said Bayer while adding that Erica Mann, the current head of its consumer health business will leave the company ahead of her contractual agreement which would have ended at the end of 2018.
Bayer’s non-prescription drugs business is seeing declining revenue.
The firm has been caught off-guard by the speed of U.S. consumers who switched to online stores, such as Amazon, rather than stick with established drugstore’s brick and mortar operations.
With the ability that online shopping provides consumers, that of comparing prices, Bayer’s premium brands, including sunscreen Coppertone and allergy remedy Claritin have suffered sales loss.
As a response to this trend, U.S. drugstore chains have seen a consolidation which has increased their purchasing power to squeeze procurement prices.
Bayer’s consumer health business reported a 7.4% fall in third quarter sales, down by 2.9% adjusting for currency fluctuations and portfolio changes.
The firm’s 9 month sales were down by 0.8% at $5.27 billion (4.46 billion euros).