Story
Bayer Secures €3 Billion From Apollo for Stake in Contraceptives Unit
Summary
Bayer has announced a €3 billion equity financing deal with Apollo Global Management for a non-controlling stake in its Long Acting Reversible Contraceptives business. The German pharmaceutical giant will retain full operational control of the unit, best known for its Mirena family of products.
German pharmaceutical and life sciences company Bayer AG announced on Friday it has secured €3 billion in equity financing from Apollo Global Management in exchange for a non-controlling stake in its Long Acting Reversible Contraceptives (LARC) business.
Deal Structure and Control
Under the terms of the agreement, Bayer's LARC business will be organized into a new, separate entity. While Apollo will hold an equity stake, Bayer confirmed it will maintain full operational and strategic control over the unit. The companies did not disclose the precise details of the resulting ownership structure.
The primary asset within this business is the highly successful Mirena family of products, a line of intrauterine systems that can provide pregnancy protection for up to eight years. According to company data, the Mirena product line generated sales of €1.37 billion in 2025.
AdMarket Perspective
The transaction provides Bayer with a significant capital infusion, which can be used to strengthen its balance sheet. For investors, the deal signals management's willingness to explore alternative financing structures to unlock value from its portfolio without fully divesting key assets.
In a note to clients, analysts at Goldman Sachs characterized the transaction as having "broadly neutral financial implications" for Bayer. The investment bank noted that the deal highlights management’s "open and creative approach to improving the balance sheet."