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Bayer

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Bayer AG
Frankfurt Stock Exchange: BAYN
IndustryPharmaceuticals; Chemicals; Agronomy
FoundedAugust 1, 1863
FounderFriedrich Bayer; Johann Friedrich Weskott
Area served
Worldwide
Key people
Bill Anderson (CEO)
ProductsPrescription drugs (aspirin; rivaroxaban; sorafenib; regorafenib; ciprofloxacin; contraceptives; oncology; gynecology; infectiology); Over-the-counter health products; Crop protection products (insecticides such as Gaucho)
Revenue€50.7 billion (2022)
€4.2 billion (2022)
Number of employees
101,369 (December 31, 2022)
DivisionsPharmaceuticals; Consumer Health; Crop Science
Websitehttp://www.bayer.com

Bayer AG is a German pharmaceutical and agrochemical company founded in 1863 in Barmen (today part of Wuppertal) by Friedrich Bayer and Johann Friedrich Weskott. Its headquarters are in Leverkusen, North Rhine-Westphalia, Germany. Bayer develops prescription drugs, over-the-counter health products, and crop protection products for agriculture.[1]

Bayer was the first company to synthesize pure acetylsalicylic acid (aspirin) in 1897.

History

Early years

The company was founded on August 1, 1863, in Barmen by Friedrich Bayer and Johann Friedrich Weskott under the name "Friedr. Bayer & Co." (Farbenfabriken vormals Friedrich Bayer & Companion). It initially produced dyes such as fuchsine and aniline.[2][3]

In 1866, the headquarters and main production facilities were moved to Elberfeld.

In 1881, the company was incorporated as a joint-stock company. In 1883, the chemist Carl Duisberg joined Bayer and significantly expanded its research department.

Before 1900, a compound containing 5 percent pure heroin was sold by pharmacies under the brand name "Heroin." At the time, it was marketed as a remedy for respiratory ailments and diseases such as tuberculosis and acute bronchitis.[4]

A French subsidiary was established in 1898 under the name Société des Produits Fréd. Bayer & Cie.

Having succeeded in synthesizing pure acetylsalicylic acid (aspirin) in 1897, Bayer filed for the patent and trademark Aspirin in 1899.[5] However, Bayer lost this patent as a result of World War I and the Treaty of Versailles, which stipulated that the trademark and manufacturing process became public domain in certain countries (France, the United States, etc.).

The Bayer cross logo was designed in 1904. In 1905, Bayer began pharmaceutical production in the United States.[6]

Merger into IG Farben

Bayer later became part of IG Farben, a conglomerate of German chemical companies created in the 1920s.

In 1930, IG Farben acquired nearly half of the capital of Deutsche Gesellschaft für Schädlingsbekämpfung (Degesch), which would invent the potent insecticide Zyklon B.

In 1931, Gerhard Domagk, working for the IG Farben division that would become Bayer after the war, discovered Prontosil, a sulfonamide antibacterial. He later received the Nobel Prize in Physiology or Medicine for this discovery.[7]

Gerhard Schrader, employed by Bayer, synthesized the volatile neurotoxic liquid tabun in 1936, based on the work of Leonor Michaelis. Tabun was incorporated into aerial bombs by the German Wehrmacht, sometimes mixed with mustard gas.

In 1937, Bayer synthesized polyurethane, a polymer usable as a plastic.

Degesch, an IG Farben subsidiary, mass-produced Zyklon B crystals for the Nazis, which were used in the gas chambers of extermination camps.

Bayer after IG Farben dismantling

In the early 1950s, as part of denazification, the IG Farben group—complicit in the Final Solution—was dismantled into several separate companies, including Bayer, BASF, and Agfa.[8]

In 1953, Bayer synthesized a new plastic, polycarbonate, marketed under the brand name Makrolon.

In 1986, Bayer discovered ciprofloxacin, an antibiotic in the fluoroquinolone family.

In 1995, Helge Wehmeier, then CEO of Bayer, publicly apologized to Elie Wiesel, Nobel Peace Prize laureate and Holocaust survivor, for the actions of IG Farben against Jewish populations.[9]

Diversification in the 2000s

In 2002, Bayer AG acquired the agricultural division of Aventis (Aventis CropScience), which became Bayer CropScience AG. This division focuses on agrochemistry and genetically modified seeds: cereals, cotton, etc.

To separate operational and strategic management, Bayer AG was reorganized in December 2003 as a holding company. A publicly traded company was assigned to each sector of Bayer AG: Bayer CropScience AG (agrochemistry); Bayer HealthCare AG (health, including the pharmaceutical laboratory Bayer Schering Pharma); Bayer MaterialScience AG (polyurethane, polycarbonate, raw materials for coatings and adhesives). In 2004, Bayer spun off its specialty chemicals activities into Lanxess.

On March 23, 2006, Bayer launched a takeover bid for Schering AG. The acquisition was completed on July 2, 2007. The ethical pharmaceuticals entity was named Bayer Schering Pharma. The Bayer HealthCare unit grouped ethical healthcare, consumer healthcare, veterinary, and diagnostic (small equipment) businesses.

At the end of October 2012, Bayer announced it had acquired the vitamin supplement company Schiff for $1.2 billion.[10]

In November 2013, Bayer acquired the Norwegian company Algeta for $2.4 billion.

In February 2014, Bayer acquired Dihon, a company specializing in traditional Chinese medicine, for an undisclosed amount estimated at over €500 million.[11]

In May 2014, Bayer acquired Merck & Co.’s consumer health business for $14.2 billion. The deal also included a smaller partnership on certain Merck drugs, notably Adempas. That same month, Bayer sold its Bayer Interventional business, which produced medical devices such as catheters, to Boston Scientific for $415 million. With this acquisition, Bayer became the world’s second-largest over-the-counter drug company.[12]

In June 2015, Bayer sold its diabetes care business to Panasonic Healthcare, a subsidiary of Panasonic, for €1.02 billion.[13]

Focus on life sciences and Monsanto acquisition

At the end of 2015, Bayer spun off its high-performance materials division to create a public independent company named Covestro, retaining 70 percent ownership. Bayer chose to focus strategically on its life sciences businesses. Covestro shares were listed on the Frankfurt Stock Exchange in October 2015. In March 2017, Bayer sold an 11 percent stake in Covestro for €1.46 billion, reducing its ownership to 53.3 percent.[14] In September 2017, its stake in Covestro fell to 24.6 percent after successive sales. In May 2018, Bayer sold a 10.4 percent stake in Covestro for €1.8 billion, retaining only 6.8 percent ownership.[15]

In May 2016, Bayer announced a $62 billion cash offer for Monsanto after two weeks of rumors.[16] In September 2016, Bayer increased its offer to $66 billion, and on September 14, 2016, announced that Monsanto shareholders had accepted the offer.

In October 2017, BASF announced it would acquire Bayer’s vegetable seeds business, including the LibertyLink brand, for €5.9 billion.[17]

On June 4, 2018, Bayer announced that the combined company would continue under the name "Bayer," effectively retiring the Monsanto brand name.[18]

In the months that followed, Bayer’s market capitalization decreased by €30 billion by the end of October 2018, partly due to the financial risk of billions of dollars in damages related to about 7,800 lawsuits in the United States against Monsanto. In July 2018, Bayer announced the sale of its dermatology business to Leo Pharma for an undisclosed amount.[19]

In November 2018, Bayer announced a major restructuring plan related to the Monsanto acquisition, intending to divest certain businesses, including its veterinary unit and over-the-counter pharmaceutical brands such as Coppertone and Dr. Scholl’s. The plan included an impairment of €3.3 billion and the elimination of 12,000 jobs by 2021, particularly in administrative functions.[20]

Between 2016 and 2019, Bayer’s sales of pesticides banned in Europe but destined for Brazil increased by 50 percent. At least a dozen toxic substances banned in Europe and harmful to bees and birds were sold by Bayer in Brazil under various pesticide brands.[21]

In May 2019, Beiersdorf announced the acquisition of Coppertone, a U.S. sunscreen manufacturer, from Bayer for $550 million.[22] In July 2019, Bayer sold the Dr. Scholl’s brand to Yellow Wood Partners for $585 million.

In August 2019, Lanxess and Bayer announced the sale of their joint venture Currenta to Macquarie Infrastructure and Real Assets for €3.5 billion.[23] At the same time, Bayer announced the acquisition of BlueRock Therapeutics, a company specializing in stem cell–based treatments, for up to $600 million, dependent on milestone achievements.[24]

Also in August 2019, Elanco announced the acquisition of Bayer’s animal health business for $7.6 billion in cash and stock, making it the world’s second-largest animal health company.[25]

Diversification since 2020

In February 2020, Bayer announced that much of its Berlin research unit would be transferred to the international contract research organization Nuvisan, with research continuing at Bayer’s Berlin Innovation Campus. The transfer was expected to be completed by mid-2020.[26] In September 2020, Bayer signed a partnership with the startup DirectoSanté to offer a telemedicine solution allowing healthcare teams to maintain contact with cancer patients and ensure remote medical follow-up.

In January 2021, the German biopharmaceutical company CureVac entered into a partnership with Bayer to deploy its COVID-19 vaccine and accelerate its production.[27]

In October 2020, Bayer announced the acquisition of Asklepios BioPharmaceutical for $4 billion, marking its entry into gene therapy.[28]

In August 2021, Bayer announced the acquisition of Vividion Therapeutics for up to $2 billion.

Bayer is developing two gene therapies for Parkinson’s disease through its subsidiaries BlueRock Therapeutics and Asklepios BioPharmaceutical, currently in Phase I clinical trials.

In January 2022, Bayer entered into a partnership with Mammoth Biosciences to develop new gene and cell therapies for liver diseases.

Current activities

Bayer’s current activities are structured into three divisions: Pharmaceuticals (prescription drugs), Consumer Health (over-the-counter drugs), and Crop Science (agricultural products).

In 2020, Bayer comprised over 385 subsidiaries and joint ventures worldwide and operated in 79 countries. The group employed more than 99,530 people and generated €41.4 billion in revenue. It also invested €4.9 billion in research and development.[29]

Prescription drugs

The Pharmaceuticals division is responsible for research, development, production, and distribution of prescription-only products, particularly in the areas of pulmonology, cardiology, women’s health, oncology, hematology, and ophthalmology.[30]

The most important research sites for pharmaceutical products are Berlin, Wuppertal, and Cologne in Germany; San Francisco and Berkeley in the United States; Turku in Finland; and Oslo in Norway.[31]

Over-the-counter products

One of Bayer’s main research centers for over-the-counter products (skin care, dietary supplements, etc.) is located in Gaillard, Haute-Savoie, France.[32]

Crop protection products

Bayer develops crop protection products, seeds, and farmer support services. One of the research sites—La Dargoire Research Center (CRLD)—located near Lyon, focuses on research into fungal diseases.[33]

References

  1. ↑ https://www.bayer.fr/a-propos
  2. ↑ http://data.bnf.fr/12362679/bayer_ag/
  3. ↑ https://www.bayer.fr/historique
  4. ↑ Denis Richard; Jean-Louis Senon; Marc Valleur. Dictionnaire des drogues et des dépendances. Larousse, 2004. ISBN 2-03-505431-1.
  5. ↑ Valentin Fuster; Joseph M. Sweeny. "Aspirin: A Historical and Contemporary Therapeutic Overview". Circulation. Vol. 123, No. 7 (2011), pp. 768–778. DOI:10.1161/CIRCULATIONAHA.110.963843.
  6. ↑ Ibis Sánchez-Serrano. The World’s Health Care Crisis: From the Laboratory Bench to the Patient’s Bedside. Elsevier, 2011. ISBN 978-0-12-391875-8.
  7. ↑ Gerhard Domagk profile. Science History Institute, June 1, 2016.
  8. ↑ Emil Weiss. Criminal Doctors – Auschwitz. France, 2013.
  9. ↑ "Head Of Bayer Apologizes To Elie Wiesel For Holocaust". AP News.
  10. ↑ Bayer to buy U.S. vitamin maker Schiff for $1.2 billion. Reuters, October 30, 2012.
  11. ↑ Bayer buys Dihon to add traditional Chinese medicine, Reuters, February 27, 2014.
  12. ↑ Merck vend ses produits grand public à Bayer pour 14,2 milliards de dollars. Le Figaro, May 6, 2014.
  13. ↑ Bayer sells Diabetes Care business to Panasonic Healthcare. Reuters, June 10, 2015.
  14. ↑ Bayer sells 11 percent of Covestro for 1.46 billion euros. Reuters, March 1, 2017.
  15. ↑ Bayer sells further Covestro stake for 2.2 billion euros. Reuters, May 3, 2018.
  16. ↑ (en) « Bayer said to explore bid for 40 billion seed company Monsanto », May 23, 2016.
  17. ↑ Reuters, October 13, 2017.
  18. ↑ Bayer tire un trait sur la marque Monsanto. Les Échos, June 4, 2018.
  19. ↑ Bayer sells prescription dermatology brands to Denmark's Leo Pharma. Reuters, July 31, 2018.
  20. ↑ Plombé par Monsanto, Bayer supprime 12.000 postes. Les Échos, November 29, 2018.
  21. ↑ Pichard, Guy. "Comment des pesticides interdits en Europe se retrouvent dans nos jus, notre café et nos assiettes via le Brésil". Bastamag.
  22. ↑ Nivea-maker Beiersdorf buys Coppertone for $550 million. Reuters, May 13, 2019.
  23. ↑ Lanxess, Bayer sell chemical park operator to Macquarie for $3.9 billion. Reuters, August 6, 2019.
  24. ↑ Bayer mise sur les cellules souches avec le rachat de BlueRock. La Tribune, August 8, 2019.
  25. ↑ Elanco to become No.2 in animal health with $7.6 billion Bayer deal. Reuters, August 20, 2019.
  26. ↑ Bayer und Nuvisan schaffen neue Forschungseinheit in Berlin. Bayer AG Communications, June 24, 2020.
  27. ↑ Covid : Curevac se repose sur Bayer pour déployer massivement son vaccin. Les Echos, January 7, 2021.
  28. ↑ Bayer to acquire Asklepios Bio in foray into gene therapy worth up to $4 billion. Reuters, October 26, 2020.
  29. ↑ https://www.bayer.fr/fr/chiffres-cles
  30. ↑ Bayer Canada, January 17, 2020.
  31. ↑ Bayer Switzerland, December 19, 2019.
  32. ↑ Les Echos, September 8, 2021.
  33. ↑ Circuits Culture, December 8, 2020.
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