Bayer

Bayer AG is a German chemical and pharmaceutical company founded in Barmen, Germany, by Friedrich Bayer in 1863. Bayer has its headquarters in Leverkusen, North Rhine-Westphalia, Germany. It is currently the third largest pharmaceutical company globally. Bayer was one of the important German chemical companies of the late 19th and 20th centuries. Its signature product was aspirin made from coal tar. The company in 2008 is a considerably different corporate entity. Since a major reorganization in 2003, it has become the strategic management holding company for the Bayer Group.

Bayer AG is composed of five main divisions: Healthcare, Crops Science, Materials Science, Technology Services, and Business Services. Bayer's Healthcare activities involve innovation and development in pharmaceutical and medical products; Bayer Crop Science deals with chemical products and services related to crop protection and nonagricultural pest control; Bayer Materials Science focuses on research and development of advanced and high-performance industrial chemical materials such as polycarbonate, polyurethane, and advanced organic polymers, advanced coatings, and such cutting-edge materials as nanotube systems and technology; Bayer Technology Services is Bayer's process and plant development arm, and includes plant design, engineering, construction, and optimization; and Bayer Business Services is Bayer's center for information technology (IT) design, development, and implementation in such areas as infrastructure and applications, procurement and logistics, human resources and management services, and finance and accounting.

In addition to these activities, Bayer has formed the company Currenta, a joint-venture service company with Lanxess that offers a variety of services dedicated to the chemical industry, including utility supply, waste management, infrastructure, and safety and security. As of December 2007 Currenta operates the CHEMPARK sites in Leverkusen, Dormagen, and Krefeld-Uerdingen, Germany.

Bayer AG has four major sales regions. In descending order of sales, these are Europe, North America, Asia/Pacific, and Latin America/Africa/Middle East. The year 2007 was a profitable year for the company. Sales rose by 12 percent to €32.4 billion. Between 2007 and 2008, Bayer experienced increased sales across all divisions and geographical regions.

History

As with the other major German chemical companies of the late 19th century, the company's success was based on advanced scientific and technical research in the synthesis of coal-tar-based organics. Bayer's first important commercial products were coal-tar dyes for use in the textile industry. Because of the chemical linkages between these compounds [Page 126]and pharmaceutical products, Bayer moved into biochemical research and innovation. By the start of World War I, Bayer, under the technical leadership of chemist Felix Hoffmann, discovered and brought to market such landmark pharmacological products as aspirin, sulfa drugs, and anesthetics.

During this period, Bayer became famous for holding tightly onto its patents to gain commercial advantage or as political leverage for German colonial interests. This policy was criticized by humanitarian groups at that time for the delays it caused in the delivery of life-saving drugs in Europe (e.g., to fight pneumonia) and less developed regions, such as Africa (e.g., to use against cases of sleeping sickness). Bayer also developed “mustard gas” that was used by the German military in World War I. As part of its reparations requirements following the war, Bayer's assets—including patents and trademarks—were confiscated by the United States and its allies. These assets were eventually acquired and freely worked by selected chemical firms in the United States, Canada, and other countries.

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