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Bayer's Skyla Cleared in the US

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The HealthCare unit of Bayer AG (BAYRY - Free Report) received encouraging news from the US Food and Drug Administration (FDA), which recently approved Bayer’s low dose levonorgestrel-releasing intrauterine system (IUS) known as Skyla. Skyla helps in preventing pregnancy for up to three years when placed in the uterus.

Skyla’s approval provides women with a reliable option in case they want to avoid taking pills. Moreover, the new IUS allows a rapid return to a women’s usual level of fertility after removal. Skyla’s approval will add on to Bayer’s wide range of birth control products.

Meanwhile, in Dec 2012, Bayer successfully completed its registration procedure in the EU for its new IUS system. The product is expected to be marketed in the EU under the trade name of Jaydess.

We note that companies like Warner Chilcott have a presence in the birth control products market.

The HealthCare unit of Bayer was recently in the news for receiving the necessary regulatory approval from the Federal Trade Commission for the completion of its acquisition of Teva Pharmaceutical Industries Limited’s (TEVA - Free Report) animal health unit in the US.

Moreover, the HealthCare unit of Bayer announced earlier this month that a phase III trial (DECISION: n=417) of Nexavar (sorafenib), co-developed and marketed with Onyx Pharmaceuticals Inc. met its primary endpoint.

We currently have a Neutral recommendation on Bayer. The stock carries a Zacks Rank #2 (Buy). Other large-cap pharma stocks such as Novartis AG (NVS - Free Report) and Eli Lilly and Company (LLY - Free Report) also carry a Zacks #2 Rank (Buy).

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