Stability in Motion

Stefan Oelrich, Member of Bayer AG’s Board of Management; Head of Bayer Pharmaceuticals

© Bayer

CHEManager: Given the current unpredictability in global trade—ranging from shifting tariff regimes to geopolitical tensions—how is Bayer’s Pharmaceuticals division building resilience into its supply chains and market strategies to maintain stability in such an unstable external environment?

Stefan Oelrich: At Bayer Pharmaceuticals, we are taking several strategic steps to build even more resilience into our supply chain and market strategies. We are closely monitoring geopolitical developments through an established task force and implementing immediate mitigation measures at both the product and supply chain levels. We continue to review and adapt our internal and external supply network to further increase resilience, agility, and flexibility.

Have you changed your approach to sourcing critical raw materials and manufacturing active ingredients in light of the supply chain disruptions experienced during the pandemic or the current VUCA environment?

S. Oelrich: We continue to pursue a systematic approach of comprehensive risk mitigation measures encompassing evaluation of our sourcing strategies, risk analyses, and the use of multiple sourcing channels. We continuously assess our internal and external manufacturing footprint. These steps ensure that our suppliers meet regulatory requirements focused on product quality and availability.  

Bayer recently restructured its Pharmaceuticals leadership team and introduced a new operating model. What were the key drivers behind this transformation, and how do you envision it enhancing stability and growth?

S. Oelrich: As part of our journey to become more mission-centric and value-focused, we have shifted from functional silos and multi-hierarchical layers towards a new operating model rooted in Product and Customer Teams. Within this new setup, we have restructured our Leadership Team to include, for example, a new Chief Operating Officer role, the goal of which is to further enhance customer value, maximize market opportunities, and generate revenue growth and profitability for Bayer Pharmaceuticals. We have also created a new ‘Global Commercialization’ organization which marries elements of our former Strategic Business Unit Oncology, Global Marketing, and Digital & Commercial Innovation, with parts of Medical Affairs and Pharmacovigilance. The resulting closer collaboration between R&D and Commercialization is enabling the integration of commercial insights into early development and decision-making, which is paving the way for enhanced stability and future growth.