Bayer reported a 4.3-percent increase in pharmaceutical sales for the second quarter to 2.7 billion euros ($3.5 billion), compared to the same period last year, despite a drop in revenue from the company's YAZ family of oral contraceptives.

The drugmaker reported that three-month sales of Betaferon/Betaseron dropped 10.7 percent to 302 million euros ($395 million), due to greater competition, especially in Germany and the US.

Combined sales of YAZ, Yasmin and Yasminelle fell 14.7 percent to 289 million euros ($378 million) due to lower demand and increased competition following the launch of Teva's generic version of the oral contraceptive in June.

Quarterly sales of Nexavar jumped 19.6 percent to 186 million euros ($243 million).

Overall company profit dropped just over 1 percent to 525 million euros ($686 million), falling well below analysts' estimates of 776 million euros ($1 billion), due in part to legal charges related to litigation surrounding YAZ, and costs associated with a write down for its cancer drug Zevalin.

Group sales reached 9.2 billion euros ($12 billion), up 14.6 percent.

Looking forward, the company adjusted its sales forecast for its HealthCare division, following "the unexpected market entry of a generic competitor to YAZ" in the US. The company said it expects revenue from pharmaceuticals to remain at the same level as last year, after earlier predicting a 3 percent rise.

Commenting on the results, Bankhaus Metzler analyst Sebastian Frericks said "it's not entirely unexpected. They’re challenging numbers. Healthcare [was] disappointing."