Bayer has agreed a €3 billion ($3.4 billion) equity deal with New York-based asset manager Apollo for a minority stake in its long-acting reversible contraceptives business.
The German pharmaceutical giant will retain majority ownership and full operational control of the newly established LARC unit under the terms of the agreement.
Bayer said the LARC business will remain fully consolidated in its financial statements, meaning the deal carries no adjustment to the company’s existing strategy.
Bayer CFO Judith Hartmann described the arrangement as “a strategic financing solution that strengthens our capital structure” in a release on Friday.
Hartmann added that the deal “enhances our financial flexibility as we manage increased liquidity requirements this year related to bond maturities and litigation procedures, while continuing to execute our long-term priorities.”
The LARC unit includes well-known contraceptive products such as Mirena, Kyleena, Jaydess and subdermal implant Jadelle, which together represent Bayer’s fourth-largest product category globally.
The IUS products collectively recorded combined sales of €1.37 billion last year, growing by more than 12% on higher volumes and stronger demand in the United States.
First-quarter sales for the contraceptives portfolio slipped 10% to €316 million ($361 million), though the full-year 2025 performance reflected an 8% rise over the prior year.
Bayer continues to face significant litigation costs tied to its Roundup glyphosate herbicide, inherited through its $66 billion acquisition of agricultural firm Monsanto, with thousands of lawsuits alleging a link to cancer.
Goldman Sachs said the Apollo transaction carries broadly neutral financial implications for Bayer, while noting that the deal highlights management’s open and creative approach to improving the balance sheet.
The company is simultaneously pursuing a broader restructuring drive aimed at building its core pharmaceutical business and making the group faster, more agile, and less bureaucratic.
In May, Bayer agreed its first biopharma acquisition in several years, paying $300 million upfront for privately-held US biotech Perfuse Therapeutics and its novel drug implant targeting eye diseases.
The exact ownership structure of the LARC unit following the Apollo investment has not been disclosed by either party.
The deal is expected to close in the third quarter of 2026, pending approval from antitrust authorities and the satisfaction of other customary closing conditions.