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| Britannica Concise Encyclopedia: Bayer AG |
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Bayerwerk, Gebäude W11, Kaiser-Wilhelm-Allee 51368 Leverkusen, Germany Tel. +49-214-30-1 Fax +49-214-30-663-28 |
Type: Public
On the web:
http://www.bayer.de
Employees:
108,600
Employee growth: 2.3%
You could get a headache trying to name all of Bayer AG's products. The company, which created aspirin in 1897, makes health care products (pharmaceuticals, OTC drugs, and animal health care), specialty materials (plastics and high-performance materials), and agricultural products (for crop protection and home garden care). It operates in the US through Bayer Corporation. Besides its line of Bayer aspirins, the company's best-known consumer brands include Aleve, Alka-Seltzer, and One-A-Day vitamins. Its top selling pharmaceuticals include multiple sclerosis treatment Betaseron and birth control pill Yasmin. Overall, Bayer (which is also referred to as Bayer Group) has some 315 operating companies worldwide.
Key numbers for fiscal year ending December, 2008:
Sales: $46,397.9M
One year growth: (2.7%)
Net income: $2,430.0M
Income growth: (65.0%)
Officers:
Honorary Chairman, Supervisory Board: Hermann Josef Strenger
Chairman, Supervisory Board: Manfred Schneider
CEO, HealthCare: Marijn E. Dekkers
Competitors:
BASF SE
Johnson & Johnson
Pfizer
| Company History: Bayer A.G. |
Incorporated: 1881 as Farbenfabriken vorm. Friedr. Bayer &
NAIC: 325412 Pharmaceutical Preparation Manufactur- ing; 32551
SIC: 2834 Pharmaceutical Preparations; 2851 Paints & Allied Products; 6719 Holding Companies Nec
Comprised of over 350 companies, Bayer A.G. operates as one of the world's largest chemical manufacturers. Its four main business segments include Health Care, Agricultural, Polymers, and Chemicals. Within the Health Care division are the Pharmaceutical, Consumer Care, and Diagnostics business groups. The Agriculture division operates the Crop Protection and Animal Health groups. The Polymers division is made up of five segments including Plastics, Rubber, Polyurethanes, Coatings, and Colorants, and also includes fiber subsidiary Bayer Faser GmbH. The Chemicals division operates the Basic and Fine Chemicals unit, Specialty Products, and subsidiaries Haarmann & Reimer, H.C. Stark, and Wolff Walsrode. Bayer has operations in nearly every country in the world with a majority of its business in Europe, the Far East, and North America. The firm is among industry leaders in research and development, spending nearly 12 percent of its revenues on this segment.
Bayer traces its history to the 1863 founding of a dyestuffs factory in Barmen, Germany, a region that later became part of the industrial city of Wuppertal on the Rhine river in West Germany. The factory was set up by Friedrich Bayer and Johan Friedrich Weskott, a master dyer. Only two years later, the men commenced global operations of sorts, acquiring a share in a U.S. coal tar dye factory and exporting the product. Subsequent expansion included a new factory in Moscow. By 1881, the growing company was being run by heirs of Bayer and Weskott, and they reorganized the concern as Farbenfabriken vorm. Friedr. Bayer & Co., a joint-stock company. A plant in northern France was established in 1883 and others throughout the homeland of Germany followed.
In 1884, chemist Carl Duisberg joined the company; he would oversee a period of remarkable innovation at Bayer. Expanding beyond the development and manufacture of dyestuffs, the company established a pharmaceutical department in 1888. Although Bayer became a world leader in dyestuffs, its place in the history of early 20th-century chemistry was secured by its contributions to pharmacology. Specifically, at the turn of the century a Bayer chemist, Felix Hoffman, became the first to synthesize acetylsalicylic acid into a usable form. The result, aspirin, was patented in 1899 and went on to become the most popular pain reliever worldwide.
Moreover, in 1908, the basic compound for sulfa drugs was synthesized in Bayer laboratories. The immediate application of the compound was a reddish orange dye, which was soon discovered to be effective against pneumonia, a major health hazard of the early 20th century. Despite the lives that could have been saved if the sulfa drug had been released throughout Europe immediately, Bayer held onto the formula. Frustrated French chemists were forced to duplicate the drug in their own laboratories in order to introduce it to the market. In 1912, Bayer moved its headquarters to Leverkusan, where they would remain into the 21st century.
Bayer chemists regularly tested dye compounds for their effectiveness against bacteria. In 1921, they discovered a cure for African sleeping sickness, an infectious disease that had made parts of Africa uninhabitable. Aware of the political as well as pharmacological implications of its compound, Bayer offered the British the formula to the drug, known as Germanin, in exchange for African colonies. Britain declined the offer. Non-cooperation continued as during World War I Bayer deprived the Allies of drugs and anesthetics whenever possible. In 1925, Duisberg, who had become president of Bayer, organized a merger of the major German chemical companies into a single entity known as the Interessen Gemeinschaft Farbenwerke, or I.G. Farben. From their inception, the German chemical companies had been organized into a series of progressively more powerful trusts, but with I.G. Farben, the last vestiges of competition in the chemical industry were extinguished. Other industries, such as steel, were undergoing a similar process in Germany.
In addition to setting quotas and pooling profits, I.G. Farben pursued political aims, working to prevent any possibility of a leftist uprising that would establish worker control over industry. In order to prevent such an uprising, I.G. Farben financed right-wing politicians and attempted to influence domestic policy in secret meetings with German leaders. The trust also exercised its influence abroad, with Bayer and other companies contributing an estimated ten million marks to Nazi Party associations in other countries. Money was also designated for propaganda. In 1938, Bayer forced a U.S. affiliate, Sterling Drug, to write its advertising contracts in such a way that they would be immediately canceled if the publication in which the advertising appeared presented Germany in an unflattering light.
Bayer and I.G. Farben profited handsomely from their support of Adolf Hitler. By 1942, I.G. Farben was making a yearly profit of 800 million marks more than its entire combined capitalization in 1925, the year the cartel was formalized. Not only was I.G. Farben given possession of chemical companies in foreign lands (it had control of Czechoslovakian dye works a week after the Nazi invasion), but the captured lands provided its factories in Germany with slave labor. In order to take full advantage of slave labor, I.G. Farben plants were built next to Maidanek and Auschwitz.
Many of the I.G. Farben plants contracted during the war were built in remote areas, often with camouflage. Thus, these factories did not sustain much physical damage, in contrast to the many German cities that were completely destroyed. By I.G. Farben's account, only 15 percent of its productive capacity was destroyed by the Allies. The worst damage was sustained by the extensive BASF works and factories in eastern Germany, which were destroyed by I.G. Farben employees so that the buildings would not fall under Russian control.
Immediately after the war many members of I.G. Farben's Vorstand, or board of directors, were arrested and indicted for war crimes. I.G. Farben executives were in the habit of keeping copious records, not only of meetings and phone calls, but also of their private thoughts on I.G. Farben's dealings with the government; as a result, there was extensive written evidence incriminating the Vorstand. Despite this evidence and testimony from concentration camp survivors, the Vorstand was dealt with leniently by the judges at Nuremberg. Journalists covering the 1947 proceedings attributed the light sentences, none of which was longer than four years, to the fact that all the sentences handed down at the end of the trials tended to be less severe, as well as to the judges' unwillingness to expand their definition of war criminals to include businessmen.
I.G. Farben plants operated under Allied supervision from 1947 until 1951, when the organization was dismantled in the interests of 'peace and democracy.' The division of I.G. Farben generally adhered to the boundaries of the original companies; for example, the works at Leverkusen and Elberfield reverted to Bayer. Bayer also received the AGFA photographic works.
In the first five years of its independence from I.G. Farben, Bayer concentrated on replacing outdated equipment and on supplying Germany's need for chemicals. By 1957, Bayer had developed new insecticides and fibers, as well as new raw and plastic finished materials. Bayer's resiliency in recovering from the war impressed U.S. investors, who held 12 percent of the company's stock.
During the late 1950s, Bayer began to expand overseas and by 1962 was manufacturing chemicals in eight countries, including India and Pakistan. Most of the work done abroad was 'final stage processing,' whereby active ingredients were sent from Germany and mixed with locally obtained inert ingredients that would be expensive to transport overseas. Final stage processing arrangements allowed Bayer to manufacture products, mostly farm chemicals and drugs, in developing countries more profitably.
High tariffs in the United States and high labor costs in Germany also provided incentives for Bayer to acquire production facilities in America. In 1954, Bayer and Monsanto formed a chemical company known as Mobay to manufacture engineering plastics and dyestuffs. Because Bayer did not have sufficient funds to build a plant in the United States, it provided technical expertise while Monsanto provided financial resources. Although Bayer had part and eventually full interest in Mobay, its promotional material was never allowed to mention Bayer's name, because the American rights to the Bayer trademark had been given to Sterling Drug after World War I in retaliation for Bayer's suppression of U.S. dye companies during the early years of the 20th century.
Realizing that West Germany offered only limited opportunity for growth, Bayer worked to develop products for the U.S. chemical market, emphasizing value-added products for which Bayer held the patents, including pesticides, polyurethane, dye stuffs, and engineering plastics. Technical innovations that allowed Bayer to penetrate the U.S. market included the urethane compound that forms the familiar 'crust' on urethane used in auto dashboards; before Bayer's discovery, the porous quality of urethane limited its usefulness. During this period Bayer consolidated and slowly expanded its international operations, especially in the United States. Overall, the 1960s was a good decade for Bayer as domestic production increased 350 percent while foreign production increased 700 percent.
In the early 1970s, Bayer began to increase its already substantial investment in the United States. Between 1973 and 1977, its investment rose from $300 to $500 million, which went to expand production capacity and develop its product line, which included dyes, drugs, plastics, and synthetic rubber. Although all patents held by Bayer before 1952 had been taken away as war retribution, by the mid-1970s Bayer had expanded its product line to include 6,000 items, many of them patented by the company.
Bayer increased its capacity by expanding existing plants and purchasing new ones. In 1974, Bayer purchased Cutter Laboratories, a manufacturer of nutritional products and ethical drugs, which had financial difficulties until 1977. Later, Allied Chemical sold its organic pigments division to Bayer. In 1977, a U.S. antitrust suit forced Bayer to buy Monsanto's share of Mobay, which generated $540 million in sales. The following year Bayer purchased Miles Laboratories, manufacturers of Alka-Seltzer antacid and Flintstones vitamins.
Bayer had strong incentives to expand its U.S. operations. Due to the prevalence of strikes in Europe, which interrupted product shipments, U.S. retailers were wary of contracting with European suppliers who did not have large stockpiles of their products in the United States. Lower energy and labor costs made the United States even more attractive to Bayer. U.S. holdings also cushioned the negative effects of the strong deutsche mark on imports into the United States. By the mid-1970s, 65 percent of Bayer's sales came from outside of Germany, making it critical that Bayer protect itself against currency fluctuations.
In the early 1980s, Bayer's worldwide holdings had expanded such that its corporate structure needed streamlining. German law mandated a two-tier structure for corporations, with a management board similar in function to the board of directors of a U.S. corporation reporting to a supervisory board made up of major stockholders, labor representatives, and outside interests. This board served in a supervisory capacity, approved major decisions, and appointed board members. In 1982, Bayer created a third tier below the management board. This board consisted of senior managers and corporate staff members who took over management of specific product lines that had previously been the responsibility of board members.
The late 1980s and early 1990s were a time of stagnant revenues, cost containment efforts, and an increasing emphasis on non-European markets for Bayer. From 1988 through 1993, sales fluctuated between DM 40 billion and DM 43.3 billion, while profits leveled off. Business was affected by a serious recession in Western Europe, political changes in Eastern Europe, a cyclical downturn in the chemical industry, and government reforms in health care and agriculture. In 1993, Bayer's sales of pharmaceuticals in Germany fell 20 percent as a result of government efforts to cut expenditures on pharmaceuticals; doctors, facing reduced drug budgets, began to prescribe more generic drugs in place of the expensive, proprietary drugs developed by Bayer. Agrochemical sales were dampened by the Common Agricultural Policy reform effort that reduced the amount of farmland in Europe and the amount of chemicals used in farming.
Part of Bayer's response to this crisis was to drastically cut costs--$1.6 billion in expenditures were eliminated between 1991 and early 1995. Its worldwide workforce was slashed by 14 percent, and unprofitable operations were shed, including its polyphenylene sulfide unit. In 1992, Bayer integrated all of its U.S. holdings under its Miles Inc. subsidiary, based in Pittsburgh. The following year, under the leadership of a new chairman of the board of management, Manfred Schneider, Bayer committed to enlarging its Asian and North American operations in order to reduce its dependence on the European market. In Asia, Bayer focused its expansion efforts on joint ventures with firms in Japan, Hong Kong, Taiwan, and China. In 1993, Bayer signed an agreement with the Eisai Company of Japan to sell nonprescription drugs, and the following year several joint ventures were signed in China to set up Bayer and Agfa Gevaert production operations there.
In North America, Bayer began a drive not only to bolster its operations but also to fully regain the use of its name. After securing the rights to the Bayer name in the United States after World War I, Sterling Drugs went on to establish Bayer aspirin as a household name. In 1986, for $25 million, Bayer secured from Sterling partial rights to use its name in North America outside the pharmaceutical area. In 1994, Eastman Kodak sold Sterling to the British firm SmithKline Beecham PLC, and only a few weeks later SmithKline sold the North American side of Sterling to Bayer for $1 billion. With the purchase, Bayer not only won back the full rights to its name in North America, but also gained Sterling's $366 million North American over-the-counter (OTC) drug business. In addition to the Bayer aspirin line, the Sterling acquisition included such familiar products as Midol analgesics and NeoSynephrine decongestant. The acquisition pushed Bayer into the top five producers of OTC products worldwide.
After the purchase of Sterling, Bayer changed the name of its Miles Inc. subsidiary to Bayer Corporation. The OTC operations of Miles and Sterling were then integrated into a single Bayer Corporation consumer care division. Another strategic step in North America, and one that brought added diversification to Bayer's health care operations, was the 1994 purchase of a 29.3 percent stake in Denver-based Schein Pharmaceutical Inc., a maker of generic drugs. Bayer planned to expand Schein's operations outside North America.
Bayer also beefed up its research and development (R & D) budget, particularly in health care. Its drug research efforts were already beginning to pay off in the mid-1990s, especially in North America. Bayer's anti-infective drug Ciprobay had generated $1.3 billion in sales by early 1995, with the firm's patent in effect until 2002. In 1993, Bayer introduced a hemophilia treatment called Kogenate, the company's first genetically engineered drug. Other major drugs under development included a cholesterol reducer and treatments for asthma and Alzheimer's disease.
As a result of its increasing diversification within its core businesses and its aggressive program of worldwide expansion, Bayer operated as a leading chemical and pharmaceutical company in the mid-1990s. Net income increased by 20 percent to DM 2.4 billion in 1995, the highest level the company had recorded in its history. The company's chemical business played a large role in securing such an increase. However, results for the firm's healthcare interests and its Agfa group were dim in comparison due to exchange rates, a decrease in demand, and increased pressure on prices.
The firm once again looked to restructure and control costs in order to maintain income levels. The financial success in 1995 was overshadowed by 3,800 job cuts and additional cuts were expected into the late 1990s. Underperforming assets and non-core assets were divested including the dental care and consumer businesses. As the German economy faltered, Bayer management continued to focus on cost-efficient operations. Chairman Schneider stated in an April 1996 Chemistry and Industry article, 'if our German operations are to remain competitive, we must at least stop costs rising any further and actually start to reduce them again.' In order to do just that, the firm's bulk chemical plants in Leverkusen, Dormagen, and Uerdingen, underwent a major restructuring in 1997 after recording a 79 percent decline in operating profits.
At the same time, Bayer looked for strategic alliances to secure top positions in niches of the industry. In March 1996, the firm acquired the styrenics business of Monsanto Co. for $580 million. The deal doubled Bayer's North American plastics operations and secured its position as the second largest producer of engineering resins just behind GE Plastics. The firm also pledged to increase Asian business, which in 1996 secured 14 percent of company sales. Moreover, in September 1998, Bayer acquired U.S.-based Chiron Corp's Diagnostics business for DM 1.9 billion. The deal gave Bayer the number one spot in the diagnostic systems industry and also increased its international customer base as well as its research operations.
Bayer teamed with Millennium Pharmaceuticals Inc., a genome research company, to form a discovery alliance related to drug testing for cardiovascular disease, cancer, osteoporosis, liver fibrosis, and viral infections. Bayer also teamed up with General Electric to form GE Bayer Silicones GmbH & Co. KG, a unit dedicated to developing the silicon business. The firm also partnered with Japanese firm Fujisawa to prevent worms in pets and livestock, and also began work in China on crop protection and household insecticides.
Aspirin celebrated its centennial in March 1999. Bayer celebrated by tenting its corporate headquarters in an Aspirin box while 50,000 spectators looked on. Amid the festivities, the firm continued to strengthen its core businesses and spun off 70 million shares of its Agfa-Gevaert business in order to raise capital for other operations. At the same time, the firm continued to face increased competition, consolidation in the pharmaceutical industry, and difficult market conditions in the agrochemical field as well as in the chemicals segment. Strategic alliances remained a focus, and deals for the year included the purchase of the polycarbonate and polyester sheet business of Dutch-based DSM; the acquisition of Laserlite, an Australian plastic sheeting company; and Home & Garden Ltd, a plant protection and fertilizer manufacturer. Having spent the 1990s restructuring and selling off non core assets, Bayer's key business segments included Health Care, Agriculture, Polymers, and Chemicals at the close of the 20th century.
Bayer entered the new millennium on solid ground, despite weakening market conditions in several of its business segments. The company's strategy of strengthening its portfolio continued, and in April 2000 the firm acquired the polyols business of U.S.-based Lyondell Chemical Company for $2.5 billion. Bayer stood as the world's largest polyurethane raw materials supplier after the deal.
Bayer also forged several key partnerships that were related to the firm's drive for research and development as well as product innovation. A deal with Incyte Pharmaceuticals gave Bayer access to the U.S.-based company's database of over 480 patented human genes that could be used for research. The company also partnered with LION Bioscience AG to do research in the life sciences including pharmaceuticals and diagnostics. In February 2001, Bayer teamed up with CuraGen Corporation to research, develop, and market pharmaceuticals related to metabolic disease. Bayer received the 'President's Service Award' and the 'Presidential Green Chemistry Challenge Award' in 2000 due to its long-standing commitment to research and development.
Though overall sales for 2000 were impressive, the Chemicals segment of the business continued to struggle, and restructuring continued. Bayer's focus on the future included expanding its research and technology operations, as well as continuing to shed unprofitable business. For example, in May 2001 the company ceded its 50 percent interest in EC Erdoelchemie to BP Energy in a deal valued at $500 million. During this time, Tweedy Browne & Co., a large shareholder, called for Bayer to split into three segments: chemicals, pharmaceuticals, and agchems. In response to the proposed split, chairman Schneider stated in a Chemical Week article, 'we are sure such a move would not increase Bayer's value in the long term. Our current structure facilitates the running of the business, enables us to capitalize on existing synergies, and gives us scope to respond swiftly should acquisition opportunities arise in the life science sector.' Indeed, shareholders voted down the proposal overwhelmingly, trusting management and the current structure to see the company to ever more profitable decades ahead.
Principal Subsidiaries
Bayer Vital GmbH & Co. KG; Wolff Walsrode AG; Haarmann & Reimer GmbH; Bayer Faser GmbH; Rhein Chemie Rheinau GmbH; Bayer Corporation (U.S.); Bayer Inc. (Canada); Bayer Antwerpen N.V. (Belgium); Bayer Rubber N.V. (Belgium); Bayer A/S (Denmark); Bayer plc (U.K.); Bayer S.p.A. (Italy); Bayer International S.A. (Switzerland); Bayer Hispania, S.A. (Spain); Quimica Farmaceutica Bayer, S.A. (Spain); Bayer de Mexico, S.A. de C.V.; Bayer Ltd. (Japan); Bayer (Singapore) Pte. Ltd.; Bayer (Proprietary) Ltd. (South Africa); DyStar Group (50%); H.C. Starck GmbH & Co KG (99.9%); PolymerLatex GmbH & Co. KG (50%).
Principal Operating Units
Health Care; Chemicals; Polymers; Agriculture.
Principal Competitors
E.I. du Pont de Nemours and Co.; BASF A.G.; Novartis A.G.
Further Reading
'Bayer AG Announces US$100 Million Alliance in Life Science Research,' PR Newswire, June 24, 1999.
'Bayer Bids to Be No. 1 in Polycarbonate,' Plastics Technology, February 2000, p. 69.
'Bayer Buys Lyondell's Global Polyols for US$ 2.5 Billion,' Polymers Paint Colour Journal, December 1999, p. 8.
'Bayer Continues Restructuring Plans,' Chemical Week, January 13, 1999, p. 6.
'Bayer, CuraGen Alliance,' Chemical Market Reporter, February 26, 2001, p. 7.
'Bayer Playing Catch-Up,' Med Ad News, March 2001.
'Bayer Prepares Bulk Chemicals Restructuring,' Chemical Market Reporter, March 24, 1997, p. 8.
'Bayer Regains U.S. Rights to Name with OTC Buy,' Chemical Marketing Reporter, September 19, 1994, p. 3.
'Bayer to Sell Agfa-Gevaert Stock,' Chemical Market Reporter, May 24, 1999, p. 7.
Brierley, David, 'Bayer Finds Breaking Up Is Hard to Do,' European, August 7, 1997, p. 24.
Hasell, Nick, 'The View from Bayer,' Management Today, November 1993, pp. 60--64.
Hayes, Peter, Industry and Ideology: IG Farben in the Nazi Era, New York: Cambridge University Press, 1987, 411 p.
Hume Claudia, 'Bayer Rejects Call for Split,' Chemical Week, March 21, 2001, p. 7.
Jackson, Debbie, and Emma Chynoweth, 'Recession Reaches German Majors: Turnaround in 1991 Is Still Elusive,' Chemical Week, April 15, 1992, pp. 22--23.
Jackson, Debbie, 'Bayer: Deals in the Pipeline as Decline Continues,' Chemical Week, December 8, 1993, p. 18.
------, 'Bayer Mobilizes Resources to Counter Crisis at Home,' Chemical Week, April 21, 1993, pp. 24--31.
------, 'Bayer under Pressure,' Chemical Week, March 24, 1993, p. 19.
'Job Losses Follow Best Year Ever,' Chemistry and Industry, April 1, 1996, p. 237.
Keenan, Tim, 'Bayer Pumps Up Plastics Division,' Ward's Auto World, March 1996, p. 133.
Kuntz, Mary, 'Extra-Strength Aspiration: Can Bayer's New Owners Expand the Market?,' Business Week, May 1, 1995, p. 46.
Mann, Charles C., and Mark L. Plummer, The Aspirin Wars: Money, Medicine, and 100 Years of Rampant Competition, New York: Alfred A. Knopf, 1991, 420 p.
Miller, Karen Lowry, and Joseph Weber, 'Bayer Group Eyes a Lost Continent: America,' Business Week International Editions, June 6, 1994.
Reier, Sharon, 'Elephant Walk,' Financial World, February 28, 1995, pp. 38--39.
Rosendahl, Iris, 'Out Miles, in Bayer,' Drug Topics, February 6, 1995, p. 54.
— David E. Salamie; Update: Christina M. Stansell
| WordNet: Bayer |
The noun has one meaning:
Meaning #1:
the acetylated derivative of salicylic acid; used as an analgesic anti-inflammatory drug (trade names Bayer and Empirin) usually taken in tablet form; used as an antipyretic; slows clotting of the blood by poisoning platelets
Synonyms: aspirin, acetylsalicylic acid, Empirin
| Wikipedia: Bayer |
| Type | Public (FWB: BAY, TYO: 4863) |
|---|---|
| Founded | 1863 |
| Headquarters | Leverkusen, Germany |
| Key people | Werner Wenning (CEO), Manfred Schneider (Chairman of the supervisory board) |
| Industry | Pharmaceuticals, chemicals |
| Products | Veterinary drugs, diagnostic imaging, general and specialty medicines, women's health products, over-the-counter drugs, diabetes care, pesticides, plant biotechnology, polymers, coatings, adhesives |
| Revenue | €32.918 billion (2008)[1] |
| Operating income | ▲ €3.544 billion (2008)[1] |
| Profit | ▲ €1.719 billion (2008)[1] |
| Employees | 108,600 (2008)[1] |
| Subsidiaries | Bayer MaterialScience, Bayer USA, Bayer Schering Pharma, Bayer HealthCare Pharmaceuticals, Bayer CropScience |
| Website | www.bayer.com |
Bayer AG (German pronunciation: [ˈbaɪə]) (FWB: BAY, TYO: 4863) is a German chemical and pharmaceutical company founded in Barmen, Germany in 1863. Today it is headquartered in Leverkusen, North Rhine-Westphalia, Germany. It is well-known for its original brand of aspirin. Bayer is the third largest pharmaceutical company in the world.
Bayer AG was founded in Barmen (today a part of Wuppertal), Germany in 1863 by Friedrich Bayer and his partner, Johann Friedrich Weskott.
Bayer's first major product was acetylsalicylic acid (originally discovered by French chemist Charles Frederic Gerhardt in 1853), a modification of salicylic acid or salicin, a folk remedy found in the bark of the willow plant. By 1899, Bayer's trademark Aspirin was registered worldwide for Bayer's brand of acetylsalicylic acid, but because of the confiscation of Bayer's US assets and trademarks during World War I by the United States - and the subsequent widespread usage of the word to describe all brands of the compound, "Aspirin" lost its trademark status in the United States, France, and the United Kingdom. It is now widely used in the US, UK, and France for all brands of the drug. However in over 80 other countries, such as Canada, Mexico, Germany, and Switzerland, it is still a registered trademark of Bayer.
In 1904, the Bayer company introduced the Bayer cross as its corporate logo. Because Bayer's aspirin was sold through pharmacists and doctors only, and the company could not put its own packaging on the drug, the Bayer cross was imprinted on the actual tablets, so that customers would associate Bayer with its aspirin.
As part of the reparations after World War I, Bayer had its assets, including the rights to its name and trademarks confiscated in the United States, Canada, and several other countries. In the United States and Canada, Bayer's assets and trademarks were acquired by Sterling Drug, a predecessor of Sterling Winthrop.
The Bayer company then became part of IG Farben, a conglomerate of German chemical industries that formed a part of the financial core of the German Nazi regime. IG Farben owned 42.5% of the company that manufactured Zyklon B[citation needed], a chemical used in the gas chambers of Auschwitz and other extermination camps. During World War II, the company also extensively used slave labor in factories attached to large slave labor camps, notably the sub-camps of the Mauthausen-Gusen concentration camp[2]. When the Allies split IG Farben into several pieces after World War II for involvement in organized Nazi war crimes, Bayer reappeared as an individual business. The Bayer executive Fritz ter Meer, sentenced to seven years in prison by the Nuremberg War Crimes Tribunal, was made head of the supervisory board of Bayer in 1956, after his release.[3]
In 1978, Bayer purchased Miles Laboratories and its subsidiaries Miles Canada and Cutter Laboratories (along with a product line including Alka-Seltzer, Flintstones Vitamins and One-A-Day Vitamins, and Cutter insect repellent). In 1994, Bayer AG purchased Sterling Winthrop's over the counter drug business from SmithKline Beecham and merged it with Miles Laboratories, thereby reacquiring the U.S. and Canadian trademark rights to "Bayer" and the Bayer cross, as well as the ownership of the Aspirin trademark in Canada.
Bayer has discovered, among others:
The company's corporate logo, the Bayer cross, was introduced in 1904. It consists of the horizontal word "BAYER" crossed with the vertical word "BAYER", both words sharing the "Y", and enclosed in a circle. An illuminated version of the logo lights up the skyline of Leverkusen, where Bayer is headquartered. Installed in 1958, this is the largest illuminated advertisement in the world.
In order to separate operational and strategic managements, Bayer AG was reorganized into a holding company in December 2003. The group's core businesses were transformed into limited companies, each controlled by Bayer AG. These companies are: Bayer CropScience AG; Bayer HealthCare AG; Bayer MaterialScience AG and Bayer Chemicals AG, and the three service limited companies Bayer Technology Services GmbH, Bayer Business Services GmbH and Bayer Industry Services GmbH & Co. OHG.
Following Bayer's successful reorganization, its chemicals activities (with the exception of H.C. Starck and Wolff Walsrode) were combined with certain components of the polymers segment to form the new company Lanxess. This change took place on July 1, 2004, with Lanxess listed on the Frankfurt Stock Exchange in early 2005. Bayer HealthCare's Diagnostics Division was acquired by Siemens Medical Solutions in January 2007.
Bayer AG shares are listed on the Frankfurt Stock Exchange, the London Stock Exchange and used to be listed on the New York Stock Exchange. On September 5, 2007, Bayer announced its intention to file for delisting of its American Depositary Shares (ADSs) from the NYSE. It is also planned to de-register with the U.S. Securities and Exchange Commission (SEC) and thereby terminate the respective reporting obligations.
Bayer is governed by a board of management, consisting of: Klaus Kühn, Wolfgang Plischke, Richard Pott, and Werner Wenning.[4]
In 2004 Bayer HealthCare AG acquired the OTC Pharmaceutical Division of Roche Pharmaceuticals.
On March 13, 2006, Merck KGaA announced a €14.6bn bid for Schering AG. Merck's takeover bid was surpassed by Bayer's (successful) $19.5bn white-knight bid for Schering on March 23, 2006.
On March 11, 2008, Bayer HealthCare announced an agreement to acquire the portfolio and OTC division of privately owned Sagmel, Inc., a US-based company that markets over-the-counter medications in most of the Commonwealth of Independent States countries such as Russia, Ukraine, Kazakhstan, Belarus, and others. This deal is aimed at boosting Bayer HealthCare sales and market share in the above-mentioned region and expected to be finished by the end of 2008.[5][6]
Bayer HealthCare's Animal Health Division is the maker of Advantage Multi (imidacloprid + moxidectin) Topical Solution for dogs and cats, Advantage flea control for cats and dogs and K9 Advantix, a flea, tick, and mosquito control product for dogs. Advantage Multi, K9 Advantix and Advantage are trademarks of Bayer. The division specializes in parasite control and prescription pharmaceuticals for dogs, cats, horses, and cattle. North American operation for the Animal Health Division are headquartered in Shawnee, Kansas. Bayer Animal Health is a division of Bayer HealthCare LLC, one of the world's leading healthcare companies. K9 Advantix is renowned for its popular jingle.
In 2002 Bayer AG acquired Aventis CropScience and fused it with their own agrochemicals division (Bayer Pflanzenschutz or "Crop Protection") to form Bayer CropScience. The company is now one of the world's leading innovative crop science companies in the areas of crop protection (i.e. pesticides), non-agricultural pest control, seeds and plant biotechnology. In addition to conventional agrochemical business it is involved in genetic engineering of food. The Belgian biotech company Plant Genetic Systems, became part of the company by the acquisition of Aventis CropScience.
Bayer CropScience is involved in a joint project with Archer Daniels Midland Company and Daimler AG to develop jatropha as a biofuel[7].
In 2007 Bayer took over Schering Healthcare. The acquisition of Schering was the largest take-over in Bayer’s history.
Located at the Bayer USA Headquarters in Robinson Township, Pennsylvania, a suburb of Pittsburgh, Bayer Business Services handles the Information Technology infrastructure and technical support aspect of Bayer USA and Bayer Canada. This is also the headquarters of the North American Service Desk, the central IT Help Desk for all of Bayer USA and Bayer Canada.
Bayer Healthcare has also produced the birth control pills Yaz and Yasmin. Both pills use a newer type of progesterone hormone called drospirenone in combination with estrogen. Yaz is advertised as a treatment for premenstrual dysphoric disorder (PMDD) and moderate acne.
In 1904, the company founded the sports club TuS 04 ("Turn- und Spielverein der Farbenfabriken vorm. Friedr. Bayer & Co."), later SV Bayer 04 ("Sportvereinigung Bayer 04 Leverkusen"), finally becoming TSV Bayer 04 Leverkusen ("Turn- und Sportverein") in 1984, generally however known simply as Bayer 04 Leverkusen. The club is best known for its football team, but has been involved in many other sports, including athletics, fencing, team handball, volleyball, boxing, and basketball. TSV Bayer 04 Leverkusen is one of the largest sports clubs in Germany. The company also supports similar clubs at other company sites, including Dormagen (particularly handball), Wuppertal (particularly volleyball), and Krefeld-Uerdingen (featuring another former Bundesliga football club, SC Bayer 05 Uerdingen, now KFC Uerdingen 05).[8]
However, due to cost factors, the company has decided to cut back its sponsoring of its top sports teams in most areas. The sponsoring agreements with first and second-division teams in basketball, team handball, and volleyball, as well as in olympic-level athletics and fencing, will be terminated in 2008 or 2010. Despite their many successes (multiple German national championships as well as numerous Olympic medals), they are not considered to be valuable enough as a marketing tool in terms of their cost-to-benefit ratio. Only the very "telegenic" football (soccer) team, whose marketing value is very high due the exposure in the media and the popularity of the sport itself, will continue to be supported as in the past. General sponsoring of sport for youth and for handicapped people will also be continued as in the past.[9]
In his book Aspirin: The Story of a Wonder Drug, author Diarmuid Jeffreys investigated Bayer's sponsorship of the experiments of Nazi Dr. Josef Mengele. In 1956 Fritz ter Meer became chairman of Bayer after having been sentenced at the Nuremberg trials to seven years' imprisonment for his part in carrying out experiments on human subjects at Auschwitz.
Jefferys also details Arthur Eichengrün, the Bayer chemist who first found an aspirin formulation which was tolerable in the human stomach and did not have the unpleasant side effects of nausea and gastric pain. Eichengrün also invented the name aspirin and was the first person to use the new formulation to test its safety and efficacy. However, Eichengrün was excluded from the official version of Bayer's history in 1934 because of his Jewish origin. Instead, it was claimed by Bayer that aspirin was "discovered" by an "Aryan" scientist, Felix Hoffman, to alleviate the sufferings of his rheumatic father. Bayer AG publishes beliefs in the latter.
Mr. Jeffreys' claims are widely reflected in other publications and official records,[10][11][12][13][14][15] although they are also disputed in other publications.[16]
It has also been documented that Aspirin compounds were successfully synthesized by various other scientists or groups thereof in the years between 1848-1869, long before Bayer's claims. This fact led to various patent litigations in the early 20th century.[17]
In August 2006, it became apparent that the United States rice crop had been contaminated with unapproved genetically engineered Bayer CropScience rice as undisclosed amounts were found in commercial rice supplies.[18]
More specifically, the genetically engineered rice has an herbicide-resistance trait. These forms of rice are commonly referred to amongst US rice growers as, Liberty Link Rice 601 or LL 601. Approximately 100 varieties of rice produced primarily in the following six states: Arkansas, Texas, Louisiana, Mississippi, Missouri, and California. The US rice crop is valued at approximately $1.88 billion annually. In 2005, approximately 80% of the rice exported from the US was of the long grain variety, the variety contaminated.[citation needed]
Bayer AG is involved in an ongoing controversy with French and Nova Scotian beekeepers over claimed pesticide kills of honeybees from its seed treatment insecticide imidacloprid. France has since issued a provisional ban on the use of Imidacloprid for corn seed treatment pending further action. A consortium of U.S. beekeepers has also filed a civil suit against Bayer CropScience for alleged losses.
Austrian journalist Klaus Werner alleged in his book "Schwarzbuch Markenfirmen" ("Black Book on Brand Companies"), that the Bayer subsidiary H.C. Starck financed the civil war in the Democratic Republic of Congo by trading illegally with the mineral coltan. The allegations were also confirmed by a U.N. panel of experts. Bayer alleged that since 2001 it didn't trade any more in Congolese coltan, but never proved where their resources came from.[19][20]
A cite from http://www.haemophilia-litigation.com/, access date 31.05.2006:
Bayer's anti-cholesterol drug, Baycol (also known as Lipobay and cerivastatin), has deadly side effects. The Food and Drug Administration received reports of 31 US deaths due to rhabdomyolysis, a potentially fatal adverse muscle reaction that results in muscle cell breakdown and release of the contents of muscle cells in the bloodstream. Symptoms include muscle pain, weakness, fever, nausea, and vomiting. Bayer admitted that the drug might have killed 52 people already worldwide, with another 1,100 potentially crippled. Although Bayer voluntarily recalled the drug after a large number of deaths, Germany's health minister, on 25 August 2001, accused Bayer of sitting on research documenting Baycol's lethal side-effects for nearly two months before the government in Berlin was informed.' A number of individual and class action law suits have been filed, including one in Pennsylvania which cited 480 cases of Baycol-related illnesses. The number of Baycol related deaths has risen to almost 100.[citation needed]
In October 2001, Bayer was taken to court after 24 children in the remote Andean village of Tauccamarca were killed and 18 severely poisoned when they drank a powdered milk substitute that had been contaminated with methyl parathion. The white powder that resembles powdered milk and has no strong chemical odour was packaged in small plastic bags that provide no protection to users and give no indication of the danger of the product within. The bags were labelled in Spanish only, and carried drawings of healthy carrots and potatoes but no pictograms indicating danger or toxicity.[citation needed] After a nine month investigation, a Peruvian Congressional Subcommittee has found significant evidence of criminal responsibility by both the agrochemical company Bayer and the Peruvian Ministry of Agriculture in the poisoning of 42 children in the remote Andean village of Tauccamarca in October 1999. [25]
Using Baytril and other fluoroquinolones in poultry and cattle leads to antibiotic-resistant bacteria and pathogens in animals, making it possible for strains of resistant bacteria to enter the human body. This makes human versions of the drug ineffective in treating people infected by these bacteria, which could be life-threatening to the elderly, to children and to those with depressed immune systems or in weakened conditions. Fluoroquinolones are commonly prescribed to treat serious gastrointestinal illness, including the common Campylobacter and Salmonella bacteria. Campylobacter accounts for nearly two million illnesses and 100 deaths each year, and Salmonella accounts for 1.3 million illnesses and about 500 deaths annually. Very few bacteria were found resistant to fluoroquinolones until the drugs also began to be used in poultry in 1995. By 1998, 13 percent of Campylobacter tested in humans were resistant to fluoroquinolones, and by 1999, nearly 18 percent of Campylobacter were found to be resistant.[citation needed]
After data collected by the US Centers for Disease Control and Prevention showed that the use of fluoroquinolones in poultry was speeding up the bacteria's development of resistance to the drug, the US Food and Drug Administration concluded that the health of at least 5,000 Americans is affected each year by the use of these drugs in chickens. It also proposed to ban this use. Abbott Laboratories, one of the two producers of poultry fluoroquinolones in the US, voluntarily withdrew its product, but Bayer refused to comply with the proposed ban and instead requested a hearing on the proposal. This hearing may take years to complete, and by then the ban may be a moot point since the drug may be ineffective in humans by the time the FDA is able to issue a final ban on the use of these drugs in poultry.
The United States' Centers for Disease Control and Prevention and the United Nations' World Health Organization, have strongly advocated a ban for years. On 31 October 2000, Environmental Defense, the American Public Health Association, Center for Science in the Public Interest; Delmarva Poultry Justice Alliance; Food Animal Concerns Trust; Global Resources Action Center for the Environment; Institute for Agriculture and Trade Policy; National Catholic Rural Life Conference; Physicians for Social Responsibility; and Union of Concerned Scientists signed a letter to the Bayer Corporation asking it to comply voluntarily with the proposed ban. In November, more than 180 individual health care professionals and several medical organizations, including the American Medical Association and the American College of Preventive Medicine, sent a similar letter to Bayer.
But Bayer has recently spent over US$ 50 million to build new production facilities for Baytril in Germany and the US. The company claimed that Baytril is completely harmless in a letter to veterinarians: "Bayer has and always will play a leading role in defending fluoroquinolones".[citation needed]
In January 2001, Bayer agreed to pay $14 million to the United States and 45 states to settle allegations under the federal False Claims Act that the company caused physicians and other health care providers to submit fraudulently inflated reimbursement claims to the state and federally funded Medicaid program.[26]
In September 2006, Bayer A.G. was faulted by the FDA for not revealing during testimony the existence of a commissioned retrospective study of 67,000 patients, 30,000 of whom received Trasylol and the rest other anti-fibrinolytics. The study concluded Trasylol carried greater risks. The FDA was alerted to the study by one of the researchers involved. Although the FDA issued a statement of concern they did not change their recommendation that the drug may benefit certain subpopulations of patients. In a Public Health Advisory Update dated October 3, 2006, the FDA recommended that "physicians consider limiting Trasylol use to those situations in which the clinical benefit of reduced blood loss is necessary to medical management and outweighs the potential risks" and carefully monitor patients.[27] "A renowned researcher calculates that 22,000 patients could have been saved if the Food and Drug Administration removed the heart surgery drug Trasylol two years ago, when his study revealed widespread death associated with it......"[28] The FDA took Trasylol off the market on November 5, 2007.[29]
Bayer USA was given the lowest score (15 out of 100) of all rated companies in its category in the Human Rights Campaign's 2008 Corporate Equality Index, a measure of gay and lesbian workplace equality.[30] However, they have improved and managed a score of 80 in the 2009 CEI. [31]
In October 2009 the Center for Science in the Public Interest sued Bayer for "falsely claiming that the selenium in Men's One A Day multivitamins might reduce the risk of prostate cancer." [32]
On August 28, 2008, a piece of restarting equipment exploded at Bayer's CropScience facility at Institute in West Virginia. It was close to a tank filled with methyl isocyanate which was undamaged by the explosion.[33]
In October 2008, Bayer's Canadian division was named one of "Canada's Top 100 Employers" by Mediacorp Canada Inc., and was featured in Maclean's news magazine. Later that month, the Canadian division was also named one of Greater Toronto's Top Employers, which was announced by the Toronto Star newspaper.[34]
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