Bayer

This article is about the chemical and pharmaceutical company. For other uses, see Bayer (disambiguation).
Bayer AG
Aktiengesellschaft
Traded as FWB: BAYN
Industry Pharmaceuticals, chemicals
Founded August 1, 1863 (1863-08-01)[1]
Founder Friedrich Bayer, Johann Friedrich Weskott
Headquarters Leverkusen, Germany
Key people
Marijn Dekkers (CEO), Werner Wenning (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 Increase 42.23 billion (2014)[2]
Increase €5.506 billion (2014)[2]
Profit Increase €3.426 billion (2014)[2]
Total assets Increase €70.23 billion (end 2014)[2]
Total equity Increase €20.10 billion (end 2014)[2]
Number of employees
117,866 (FTE, 2014)[2]
Subsidiaries Bayer MaterialScience, Bayer Corporation, Bayer Schering Pharma, Bayer HealthCare Pharmaceuticals, Bayer CropScience
Website www.bayer.com

Bayer AG (/ˈbər/; German pronunciation: [ˈbaɪ̯ɐ]) is a German multinational chemical and pharmaceutical company founded in Barmen (today a part of Wuppertal), Germany in 1863. It is headquartered in Leverkusen, North Rhine-Westphalia, Germany, where its illuminated sign is a landmark. Bayer's primary areas of business include human and veterinary pharmaceuticals; consumer healthcare products; agricultural chemicals and biotechnology products; and high value polymers. The company is a component of the Euro Stoxx 50 stock market index.[3]

Bayer lost its US business after World War I and during World War II was part of IG Farben and participated in Nazi war crimes. IG Farben was broken up after WWII and Bayer became independent again, and in 1978 it bought back its name in the US.

Bayer's first and best known product was aspirin; there is a dispute about what scientist at Bayer made the most important contributions to it, Arthur Eichengrün or Felix Hoffmann. Bayer trademarked "heroin" and marketed it as a cough suppressant and non-addictive substitute for morphine from 1898 to 1910. Bayer also introduced phenobarbital, prontosil, the first widely used antibiotic and the subject of the 1939 Nobel Prize in Medicine, the antibiotic Cipro (ciprofloxacin), and Yaz (drospirenone) birth control pills. In 2014 Bayer bought Merck's consumer business, with brands such as Claritin, Coppertone and Dr. Scholl's. Its BayerCropscience business develops genetically modified crops and pesticides. Its materials science division makes polymers like polyurethanes and polycarbonate.

Bayer has been involved in controversies regarding some of its drug products; its statin drug Baycol (cerivastatin) was discontinued in 2001 after 52 people died from renal failure, and Trasylol (Aprotinin), used to control bleeding during major surgery, was withdrawn from the markets worldwide when reports of increased mortality emerged; it was later re-introduced in Europe but not in the US. Bayer's neonicotinoid pesticides have been the subject of controversy regarding their possible role in colony collapse disorder.[4]

History

Bayer AG was founded in Barmen (today a part of Wuppertal), Germany in 1863 by Friedrich Bayer and his partner, Johann Friedrich Weskott.

Early history

Bayer Heroin bottle

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 "Aspirin" lost its trademark status in the United States, France, and the United Kingdom 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. It is now widely used in the US, UK, and France for all brands of the drug. However, it is still a registered trademark of Bayer in more than 80 other countries, including Canada, Mexico, Germany, and Switzerland. As of 2011, approximately 40 thousand tons of aspirin are produced each year and 10 to 20 billion tablets are taken in the U.S. alone each year for prevention of cardiovascular events.[5] It is on the WHO Model List of Essential Medicines, the most important medications needed in a basic health system.[6]

There has been controversy over the roles played by Bayer scientists in the development of aspirin. 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 that he invented the name aspirin and was the first person to use the new formulation to test its safety and efficacy. Bayer contends that aspirin was discovered by Felix Hoffmann to alleviate the sufferings of his father, who had arthritis. Various sources support the conflicting claims.[7][8] Most mainstream historians attribute the invention of aspirin to Felix Hoffmann and/or Arthur Eichengrün.[9][10]

Heroin (diacetylmorphine), now illegal as an addictive drug, was trademarked and marketed by Bayer as a cough suppressant and non-addictive substitute for morphine from 1898 to 1910.[11] Bayer scientists were not the first to make heroin, but their scientists discovered ways to make it, and Bayer led commercialization of heroin.[12] Heroin was a Bayer trademark until after World War I.[13]

Bayer-Kreuz Leverkusen

In 1903, Bayer licensed the patent for the hypnotic drug diethylbarbituic acid from its inventors Emil Fischer and Joseph von Mering. It was marketed under the trade name Veronal as a sleep aid beginning in 1904. Systematic investigations of the effect of structural changes on potency and duration of action at Bayer led to the discovery of phenobarbital in 1911 and the discovery of its potent anti-epileptic activity in 1912. Phenobarbital was among the most widely used drugs for the treatment of epilepsy through the 1970s, and as of 2014, remains on the World Health Organization's list of essential medications.[14][15]

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.[16]:51 An illuminated version of the logo is a landmark in Leverkusen, where Bayer is headquartered.[17]

World War I and II

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.

In 1916 Bayer scientists discovered suramin, an anti-parasite drug that is still sold by Bayer under the brand name Germanin. The formula of suramin was kept secret by Bayer for commercial reasons, however, it was elucidated and published in 1924 by Ernest Fourneau and his team of the Pasteur Institute.[18]:378–379[19] It is on the World Health Organization's List of Essential Medicines, a list of the most important medication needed in a basic health system.[20]

Bayer became part of IG Farben, a German chemical company conglomerate, in 1925. In the 1930s, IG Farben scientists Gerhard Domagk, Fritz Mietzsch, and Joseph Klarer, discovered Prontosil, the first commercially available antibacterial drug. The discovery and development of this first sulfonamide drug opened a new era in medicine.[21] Domagk received the Nobel Prize in Medicine for this work in 1939.[22]

During World War II, IG Farben used slave labor in factories attached to large slave labor camps, notably I.G. Auschwitz,[23] and the sub-camps of the Mauthausen-Gusen concentration camp.[24] IG Farben engaged in human experimentation on Auschwitz prisoners, often with fatal results.[25] After World War II, the Allies broke up IG Farben and Bayer reappeared as an individual business. IG Farben board member Fritz ter Meer, sentenced to seven years in prison during the IG Farben Military Tribunal at Nuremberg, was elected Bayer's supervisory board head in 1956.[26]

Post WWII

In the 1960s Bayer introduced a pregnancy test, Primodos that consisted of two pills that contained norethisterone (as acetate) and ethinylestradiol. It detected pregnancy by inducing menstruation in women who were not pregnant. The presence or absence of menstrual bleeding was then used to determine whether the user was pregnant. The test became the subject of controversy when it was blamed for birth defects, and it was withdrawn from the market in the mid-1970s. Litigation in the 1980s regarding these claims ended inconclusively. A review of the matter by the Medicines and Healthcare Products Regulatory Agency in 2014 assessed the studies performed to date, and concluded that it found the evidence for adverse effects to be inconclusive.[27]

In 1978, Bayer purchased Miles Laboratories and its subsidiaries Miles Canada and Cutter Laboratories (along with product lines including Alka-Seltzer, Flintstones vitamins and One-A-Day vitamins, and Cutter insect repellent).

Along with the purchase of Cutter, Bayer acquired Cutter's Factor VIII business. Factor VIII is a clotting agent used to treat hemophilia, and at that time it was produced by processing donated blood. In the early days of the AIDS epidemic, people with hemophilia were found to have higher rates of AIDS, and by 1983 the CDC had identified contaminated blood products as a source of infection.[28] According to the New York Times, this was "one of the worst drug-related medical disasters in history."[28] Companies including Bayer developed new ways to treat donated blood with heat to decontaminate it, and these new products were introduced early in 1984. In 1997, Bayer and the other three makers of such blood products agreed to pay $660 million to settle cases on behalf of more than 6,000 hemophiliacs infected in United States.[28] In 2003 documents emerged showing that Cutter continued to sell unheated blood products in markets outside the US until 1985.[28]

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.

In the late 1990s, Bayer introduced a statin drug, Baycol (Cerivastatin) but after 52 deaths were attributed to it, Bayer discontinued it 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.[29]

In 2004, Bayer HealthCare AG acquired the over-the-counter (OTC) Pharmaceutical Division of Roche Pharmaceuticals.

In March 2006, Merck KGaA announced a €14.6bn bid for Schering AG. Merck's takeover bid was surpassed by Bayer's $19.5bn bid on 23 March 2006.

In March 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.[30][31]

On 2 November 2010, Bayer AG signed an agreement to buy Auckland-based animal health company Bomac Group.[32]

Bayer partnered on the development of the radiotherapeutic Xofigo with Algeta, and in 2014 moved to acquire the company for about US$3 billion.[33]

In 2014 Bayer agreed to buy Merck's consumer health business for $14.2 billion which would provide Bayer control with brands such as Claritin, Coppertone and Dr. Scholl's. Bayer would attain second place globally in nonprescription drugs.[34]

In June 2015, Bayer agreed to sell its diabetic care business to Panasonic Healthcare Holdings for a fee of $1.02 billion.[35]

Bayer factory in Leverkusen, Germany

Acquisition history

The following is an illustration of the company's major mergers, acquisitions and historical predecessors:

Bayer










Bayer AG
(Founded 1863)





Miles Laboratories
(Acq 1978)




Miles Canada




Cutter Laboratories




Hollister-Stier




Corn King Company




Plastron Specialties




Pacific Plastics Company




Olympic Plastics Company




Ashe-Lockhart Inc




Haver-Glover Laboratories




Cutter Laboratories
(Founded 1897)
















Sterling Winthrop
(Acq 1994, Over the counter division)






Roche Pharmaceuticals
(Acq 2004, Over the counter division)




Bayer Schering Pharma AG

Schering
(Acq 2006)






Sagmel Inc
(Spun off 2008)






Bomac Group
(Acq 2010)






Algeta
(Acq 2014)






Merck & Co
(Acq 2014, Consumer Health Business)





Corporate structure

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.[36] 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 1 July 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.

Bayer CropScience

Bayer CropScience has products in 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.[36]

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 Belgian biotech company Plant Genetic Systems became part of Bayer through the Aventis acquisition.[36] Also in 2002, Bayer AG acquired the Dutch seed company Nunhems, which at the time was one of the world's top five seed companies.[37][38]:270

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 1 July 2011 Bayer CropScience agreed to a global settlement for up to $750 million.[39]

In September 2014, the firm announced plans to invest $1 billion in the United States between 2013 and 2016. A Bayer spokesperson said that the largest investments will be made to expand the production of its herbicide Liberty. Liberty is used to kill weeds which have grown resistant to Monsanto's product Roundup. [40]

Operations in India

Bayer CropScience Limited is the India subsidiary of Bayer AG. It is listed on the Indian stock exchanges viz. the Bombay Stock Exchange & National Stock Exchange of India and has a market capitalization of $2 billion.[41]

Bayer BioScience, headquartered in Hyderabad, India has about 400 employees, and has research, production and an extensive sales network spread across India.[42][43]

Bayer HealthCare

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.[36]

Bayer Pharma

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.[36]

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 F18 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

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.[36]

In May 2014 it was announced that Bayer would buy Merck & Co's consumer health care unit for $14.2 billion.[44]

Bayer Animal Health

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.

Bayer Diabetes Care

Bayer Diabetes Care manages Bayer's medical devices portfolio. Key products include the blood glucose monitors Contour Next EZ (XT), Contour, Contour USB and Breeze 2 used in the management of diabetes.[36]

Bayer MaterialScience

Bayer MaterialScience is a supplier of high-tech polymers, and develops solutions for a broad range of applications relevant to everyday life.[36] On September 18, 2014, the Board of Directors of Bayer AG announced plans to float the Bayer MaterialScience business on the stock market as a separate entity.[45] On June 1, 2015 Bayer announced that the new company will be named Covestro.[46]

Bayer Business Services

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 Business Services also employs 4500 specialists in India.[47]

Bayer Technology Services

Bayer Technology Services is engaged in process development and in process and plant engineering, construction and optimization.[36]

Currenta

Currenta offers services for the chemical industry, including utility supply, waste management, infrastructure, safety, security, analytics and vocational training.[36]

Products

Current

Pharmaceutical

In 2014 pharmaceutical products contributed €12.05 billion of Bayer's €40.15 billion in gross revenue.[48] Top-selling products included

Agricultural

Bayer produces various fungicides, herbicides, insecticides, and some crop varieties.[69]

Materials science

Bayer 04 Leverkusen

Main article: Bayer 04 Leverkusen

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).[90]

Chemical accident

On 28 August 2008, an explosion occurred at the Bayer CropScience facility at Institute, West Virginia, United States. A runaway reaction ruptured a tank and the resulting explosion killed two employees.[91] The ruptured tank was close to a methyl isocyanate tank which was undamaged by the explosion.[92]

Awards and recognition

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.[93] 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.[94]

See also

Notes and references

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  3. Frankfurt Stock Exchange
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  67. "British Columbia Annual Summary of Antibiotics Utilization 2010" (PDF).
  68. Drug topics June 2011 2010 Top 200 generic drugs by total prescriptions
  69. "Bayer's Agricultural Products". Retrieved 15 April 2015.
  70. "Fungicide list". Retrieved 15 April 2015.
  71. "Nativo label" (PDF).
  72. "Nativo label" (PDF).
  73. "Xpro label" (PDF).
  74. "Luna label" (PDF).
  75. "Herbicide list".
  76. "Liberty label" (PDF).
  77. "Capreno label" (PDF).
  78. "Insecticide list".
  79. "Belt label" (PDF).
  80. "Movento label" (PDF).
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External links

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