For more information on Bayer AG, visit Britannica.com.
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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:
111,800
Employee growth: 0.4%
You could get a headache trying to name all of Bayer's products. The company, which created aspirin in 1897, makes pharmaceuticals, OTC drugs, and animal health care products through Bayer HealthCare, plastics and high-performance specialty materials via Bayer MaterialScience, and crop protection and home garden care items through Bayer CropScience. Aside from Bayer Aspirin, 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 YAZ. Also known as Bayer Group, the firm has some 300 operating subsidiaries worldwide; it operates in the US through Bayer Corporation.
Key numbers for fiscal year ending December, 2011:
Sales: $49,060.8M
One year growth: 5.5%
Net income: $3,317.5M
Income growth: 92.4%
Officers:
Chairman, Supervisory Board: Manfred Schneider
Chairman, Board of Management: Marijn E. Dekkers
CFO and Member, Board of Management: Werner Baumann
Competitors:
BASF SE
Johnson & Johnson
Sanofi
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
| Type | Aktiengesellschaft |
|---|---|
| Traded as | FWB: BAYN |
| Industry | Pharmaceuticals, chemicals |
| Founded | 1863 |
| Founder(s) | Friedrich Bayer, Johann Friedrich Weskott |
| Headquarters | Leverkusen, Germany |
| Key people | Marijn Dekkers (CEO), Manfred Schneider (Chairman of the supervisory board) |
| 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 | |
| Operating income | |
| Profit | |
| Total assets | |
| Total equity | |
| Employees | 111,800 (FTE, 2011)[1] |
| Subsidiaries | Bayer MaterialScience, Bayer USA, Bayer Schering Pharma, Bayer HealthCare Pharmaceuticals, Bayer CropScience |
| Website | www.bayer.com |
Bayer AG (German pronunciation: [ˈbaɪɐ]) is a chemical and pharmaceutical company founded in Barmen (today a part of Wuppertal), Germany in 1863. It is headquartered in Leverkusen, North Rhine-Westphalia, Germany and well known for its original brand of aspirin.
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Contents
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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.[citation needed]
As part of the reparations after World War I, Bayer assets, including the rights to its name and trademarks, were 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 German chemical company conglomerate. During World War II, the IG Farben used slave labor in factories attached to large slave labor camps, notably the sub-camps of the Mauthausen-Gusen concentration camp.[2] IG Farben owned 42.5% of the company that manufactured Zyklon B,[3] a chemical used in the gas chambers of Auschwitz and other extermination camps. After World War II, the Allies broke up IG Farben and 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.[4]
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.
On November 2, 2010, Bayer AG signed an agreement to buy Auckland-based animal health company Bomac Group.[5]
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.
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. Bayer AG shares are listed on the Frankfurt Stock Exchange, the London Stock Exchange and previously on the New York Stock Exchange.
Following the 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 on July 1, 2004. Lanxess was listed on the Frankfurt Stock Exchange in early 2005. Bayer HealthCare's Diagnostics Division was acquired by Siemens Medical Solutions in January 2007.
In 2004, Bayer HealthCare AG acquired the over-the-counter (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 $19.5bn bid 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 OTC medications in most of the Commonwealth of Independent States countries such as Russia, Ukraine, Kazakhstan, Belarus, and others.[6][7]
Bayer AG comprises three subgroups and three services companies. The subgroups and service companies operate independently, led by the management holding company.[8]
Bayer CropScience has products in crop protection and nonagricultural pest control. It also has activities in seeds and plant traits.[8]
In 2002, Bayer AG acquired Aventis (now part of Sanofi) 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), nonagricultural 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.
Also in 2002, Bayer AG acquired the Dutch seed company Nunhems.
In 2006, the U.S. Department of Agriculture announced that Bayer CropScience's LibertyLink genetically modified rice had contaminated the U.S. rice supply. Shortly after the public learned of the contamination, the E.U. banned imports of U.S. long-grain rice and the futures price plunged. In April 2010, a Lonoke County, Arkansas jury awarded a dozen farmers $48 million. The case is currently on appeal to the Arkansas Supreme Court. On July 1, 2011 Bayer CropScience agreed to a global settlement for up to $750 million. In a statement to the media Bayer said: "Although Bayer CropScience believes it acted responsibly in the handling of its biotech rice, the company considers it important to resolve the litigation so that it can move forward focused on its fundamental mission of providing innovative solutions to modern agriculture." [9]
Bayer CropScience is involved in a joint project with Archer Daniels Midland Company and Daimler AG to develop jatropha as a biofuel.[10]
Bayer HealthCare is Bayer's pharmaceutical and medical products subgroup. It is involved in the research, development, manufacture and marketing of products that aim to improve the health of people and animals. Bayer HealthCare comprises a further four subdivisions: Bayer Schering Pharma, Bayer Consumer Care, Bayer Animal Health and Bayer Medical Care.[8]
In 2007, Bayer took over Schering AG and formed Bayer Schering Pharma. The acquisition of Schering was the largest take-over in Bayer’s history. The name was changed to Bayer Pharma in 2011.
Bayer Healthcare Pharmaceuticals is divided into two business units - General Medicine and Specialty Medicine.
Women's healthcare is an example of a General Medicine business unit. Bayer Pharma produces 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. Other key products include the cancer drug Nexavar, the multiple sclerosis drug Betaferon/Betaseron and the blood-clotting drug, Kogenate.[8]
An example of a Specialty Medicine Business Unit is Diagnostic Imaging. Contrast agents from this unit helps play a crucial role in precise and early diagnosis and the selection of optimal treatment. Diagnostic imaging techniques such as computed tomography (CT), magnetic resonance imaging (MRI) and ultrasound are used to make tissues and organs visible in their natural position inside the body along with contrast. Work is also focused on the development of tracers for positron emission tomography (PET). The PET tracer Florbetaben in Bayer's pipeline makes it possible to recognize beta Amyloid, one of the pathological hallmarks of Alzheimer's disease, with high accuracy very early on and while the patient is still alive.
Bayer Consumer Care manages Bayer's OTC medicines portfolio. Key products include analgesics such as Bayer Aspirin and Aleve, food supplements Redoxon and Berocca, and skincare products Bepanthen and Bepanthol.[8]
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.
Bayer Diabetes Care manages Bayer's medical devices portfolio. Key products include the blood glucose monitors Contour and Elite used in the management of diabetes.[8]
Bayer MaterialScience is a supplier of high-tech polymers, and develops solutions for a broad range of applications relevant to everyday life.[8]
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 Technology Services is engaged in process development and in process and plant engineering, construction and optimization.[8]
Currenta offers services for the chemical industry, including utility supply, waste management, infrastructure, safety, security, analytics and vocational training.[8]
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).[11]
It has been documented that aspirin compounds were successfully synthesized by various other scientists or groups between 1848–1869, long before Bayer's claims. This fact led to various patent litigations in the early 20th century.[12]
Arthur Eichengrün, a Bayer chemist, claimed to be the first to discover an aspirin formulation which did not have the unpleasant side effects of nausea and gastric pain. Eichengrün also claimed he invented the name aspirin and was the first person to use the new formulation to test its safety and efficacy. Bayer contends aspirin was discovered by Felix Hoffman to alleviate the sufferings of his father, who had arthritis. Various sources support the conflicting claims. [13][14][15]
In 1956 Fritz ter Meer became chairman of Bayer's supervisory board. He was convicted at the Nuremberg trials for his part in carrying out experiments on human subjects at Auschwitz. He was found "guilty of count two, plunder and spoliation, and count three, slavery and mass murder" and sentenced to seven years imprisonment and served five years.[16]
In August 2006, it became apparent that the United States rice crop had been contaminated with unapproved genetically engineered Bayer CropScience rice.[17]
More specifically, the genetically engineered rice has an herbicide-resistance trait. These forms of rice are commonly referred to among US rice growers as, Liberty Link rice 601 or LL 601. Approximately 100 varieties of rice are produced primarily in the following six states: Arkansas, Texas, Louisiana, Mississippi, Missouri, and California.
French and Nova Scotian beekeepers claim Bayer's seed treatment imidacloprid kills honeybees. 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 filed a civil suit against Bayer CropScience for alleged losses.
A cite from http://www.haemophilia-litigation.com/, access date 31.05.2006:
After 52 deaths were blamed on an alleged side effect of Bayer's anticholesterol drug Baycol, its manufacture and sale were discontinued in 2001. The side effect was rhabdomyolysis, causing renal failure, which occurred with a tenfold greater frequency in patients treated with Baycol in comparison to those prescribed alternate medications of the statin class.[20]
In October 2001, Bayer was taken to court after 24 children in the remote Andean village of Tauccamarca, Peru were killed and 18 severely poisoned when they drank a powdered milk substitute contaminated with the insecticide methyl parathion. A Peruvian Congressional Subcommittee found significant evidence of criminal responsibility by Bayer and the Peruvian Ministry of Agriculture.[21]
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 Medicaid.[22]
In September 2006, Bayer 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 antifibrinolytics. 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 patients. In a Public Health Advisory Update dated October 3, 2006, the FDA recommended "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.[23] The FDA took Trasylol off the market on November 5, 2007.[24]
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." [25]
In December 2010, a leaked memo from the EPA’s Environmental Fate and Effects Division asserted “Clothianidin’s (Bayer's neonicotinoid pesticide) major risk concern is to non-target insects (that is, honey bees). Exposure through contaminated pollen and nectar and potential toxic effects therefore remain an uncertainty for pollinators.”[26][27][28] In January 2011, Avaaz.org launched an online petition to ban neonicotinoid pesticides.[29]
On August 28, 2008, an explosion occurred at the Bayer CropScience facility at Institute, West Virginia. A runaway reaction ruptured a tank and the resulting explosion killed two employees. The ruptured tank was close to a methyl isocyanate tank which was undamaged by the explosion.[30]
In October 2008, Bayer's Canadian division was named one of "Canada's Top 100 Employers" by Mediacorp Canada Inc. The Canadian division was named one of Greater Toronto's Top Employers by the Toronto Star newspaper.[31] Bayer USA was given a score of 85 (out of 100) in the Human Rights Campaign's 2011 Corporate Equality Index, a measure of gay and lesbian workplace equality.[32]
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