...Liability of Bayer Pharmaceuticals The Bayer Pharmaceuticals Company was founded in 1893 by Friedrich Bayer and Johann Wescott in Barmen, Germany. Bayer is known for their trademarked Bayer Aspirin which was created in 1899. Bayer spent decades marketing heroin worldwide as a cough medicine for children. The side effects of selling heroin to children were not a concern for them. Although they originated as a pharmaceutical company they turned their attention to manufacturing chemical weapons. Bayer formed a close relationship with German firms during the World War which formed the conglomerate called IG Farben. They became the largest donor to Hitler’s army. In the post-war years Bayer grew to become the third largest pharmaceutical company in the world. In the mid-1980s Bayer was one of the companies which sold a product called Factor VIII concentrate to treat haemophilia. Factor VIII turned out to be infected with HIV and in the U.S. alone; it infected thousands of haemophiliacs, many of whom died in one of the worst drug-related medical disasters ever. But it was only in 2003 that the New York Times revealed that Bayer had continued producing and selling this infected product to Asia and Latin America after February 1984 when a safe product had become available, in order to save money. Dr. Sidney M. Wolfe, who investigated the scandal, commented, "These are the most incriminating internal pharmaceutical industry documents I have ever “(Bayer:history,2012) Bayer has been...
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...Running Head: BAYER Problem confronted by Bayer Introduction Bayer AG is a well-known German chemical and pharmaceutical company founded in the year 1863. It is situated in Barmen, Germany. In present the company is headquartered in Leverkusen, North Rhine-Westphalia; Germany. It is renowned for its master brand of aspirin. Bayer AG is the third largest pharmaceutical company all over the world. The US subsidiary of pharmaceuticals and materials enormous Bayer AG or Bayer Group operates through its three divisions and an internal services company. Bayer Corporation manages Bayer Group's US procedures in following three segments: * Bayer Health Care that deal with pharmaceuticals, animal health and over-the-counter medicines. * Bayer Material Science that deal with plastics, coatings and polyurethanes. * Bayer Crop Science that manages herbicides, fungicides and insecticides (Bayer Corporation Company Profile, 2009). The internal services unit, Bayer Corporate and Business Services of the Bayer AG, manages administrative, technology, human resources and legal & procurement functions of the company’s US operations. Bayer, which is a global enterprise, operates with core competencies in the areas of health care, nutrition and high-tech materials. Its products and services are planned to do good to people and perk up their quality of life. At the same time the company wish to generate value through invention, development and high earning authority. Significant...
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...problem 11 (found on e-book, p. 73), discuss the questions presented in Cases and Problems 2-11. Are there situations in which a company, for the common good, must give up the economic advantage accorded by intellectual property laws? How should the Bayer credo – Bayer: Success Through Expertise with Responsibility – impact its corporate responsibility in the anthrax situation? In your discussion, make reference to the Social Responsibility of Corporations Matrix, Exhibit 2.2 (p. 48) and the models of business ethics (found in e-book, pp. 47–49). My first action, as a representative of Bayer, would be to release production capabilities under specific contractual controls to other pharmaceutical facilities in order to meet the demand for the antibiotic, this enables Bayer to meet its 'common good' practice sited in its corporate policy by matching supply with demand, maintain control of its product, remain profitable, and benefit from increased production. During times of public welfare, epidemics, war, or terroristic actions companies should recognize the human element, hold it to a higher standard, and utilize methods that ensure that the company is not put into jeopardy and meets the public demand at the same time. If Bayer would have been open and honest about its production capabilities (shortages), made an effort to contract with third-party facilities to manufacture large quantities of the antibiotic, and reduce their profit margins to make it affordable, the company...
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...Market intelligence > Top ten global pharma Top ten global pharma Dr Vishal Agrawal, project manager, and Sunehli Jamwal, analyst, from GlobalData, highlight the top ten pharmaceutical companies by 2011 revenue. Pfizer 1 Johnson & Johnson 2 US pharmaceutical giant Pfizer maintained its top position in 2011 with stipulated revenue of $67.4 billion, up by 1% compared with $67.1 billion in 2010. The company’s new marketing strategy, coupled with focused organisational, financial and R&D restructuring efforts, compensated for the losses caused by Lipitor’s patent expiry. The approval of Xalkori for lung cancer, Inlyta and pneumococcal vaccine Prevnar 13 have proved to be a real lifeline for Pfizer. Moving ahead, the steady progress of the late-stage pipeline (with 22 projects in phase III and 11 under registration) will be a primary source of confidence for the company. The key strategy of the group is now to advance experimental drugs towards approval: these include Bosutinib, Tofacitinib, experimental clot-preventing drug Eliquis and its many pipeline drugs to make up for the inevitable decline in Lipitor revenue. With a view to reducing costs, Pfizer’s huge research budget has been cut by 12%. In 2012, Pfizer will focus on small to mid-sized deals and effective research partnerships to strengthen its portfolio in all therapeutic segments. Johnson & Johnson (J&J) reported 2011 revenues of $65 billion, a 5.6% increase over 2010. In 2011, the company generated...
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...A bitter pill as China crackdowns squeeze pharma margins A crackdown on corruption and pricing in China's fast-growing pharmaceutical market has squeezed profits and margins, raising a red flag to global Big Pharma that the days of easy growth in the country may be over. A Reuters' analysis of more than 60 listed Chinese healthcare firms shows average profit margins declined to around 10 percent last year from 15 percent in 2012. Average net profits fell 2.1 percent, down from close to 20 percent growth in previous years. China has been a magnet for the big global pharmaceutical companies and other healthcare firms as growth slows in Europe and the United States. It is the largest emerging drugs market and is set to be the global number two overall within three years, according to consultancy IMS Health. While global drugmakers withhold their China profit figures, the analysis suggests profit growth is harder to come by - a concern as many global firms look to China as a future growth driver. "Most companies, local and foreign, have enjoyed an easy growth phase for 5-6 years as money was thrown at the healthcare system to improve access," said Alexander Ng, Hong Kong-based associate principal at McKinsey & Co. "Now China is more into cost containment mode... and the squeeze on pricing and margins is a lot more apparent." Over the past year, China has cracked down on high prices and corruption in the healthcare sector. Authorities probed drugmakers over pricing...
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...Introduction (say what are you going to write in this answer. You may mention the main sections you are going to have in your answer [such as 'theoretical discussions', 'critical discussions'] - “The contribution by Porter (1990) on the competitive advantage of nations has led to an extensive discussion among academics and practitioners on the sources of international competitiveness (Grant, 1991; Gray, 1991). However, in order to understand why so much emphasis is placed on the diamond framework in the management literature, this essay will discuss Porter’s concept of the Diamond and the factors that contribute to the development of national competitive advantage. This paper will begin with a theoretical approach followed by the reception of different authors and schools of thoughts who disagreed with his management thinking, and then goes on to consider empirical issues which have arisen subsequently, followed by a conclusion.” Theoretical Discussions (explain the 'main theory' [such as 'Late/Early industrialization', 'Managerial enterprise', 'Weber's theory about impacts of culture'] in this question) - “Porter’s theory of national competitive advantage is based upon a study of the characteristics of the national environment which identifies four sets of variables, and an additional two, which influences a company’s ability to establish and maintain competitive advantage within international markets. These interacting determinants are: factor conditions; demand conditions;...
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...they plan to do in the future. The BASF is a chemical company that was established in 1865 in Germany. The company name, BASF, stands for Badische Anilin- und Soda-Fabrik (Baden Aniline and Soda Factory). The company has more than 140 years of history and has gone through dramatic changes, which has lead to it becoming a universal modern company. According to its website, there are more than 110,000 employees and 385 production sites all over the world, and its goal is to be a “world’s leading chemical company.” The BASF produces various chemical related products, and these are six main product categories: chemicals, plastics, performance products, functional solutions, agricultural solutions and oil & gas. A few of its competitors are Bayer AG, Dow Chemical and TOTAL. Those companies have similar business products as BASF; however, BASF seems to be the only company that does everything, from chemical related to products to oil & gas. Therefore, the BASF is pretty competitive. By doing some research about this company, I was able to find many attractions that would make students want to work for the company. First, it is a world-wide company that one can work in different regions including Europe, North America, Asia and other parts. Also, it offers diverse opportunities, since there are many segments and divisions the one can work for. It seems like anyone who is willing to work for the BASF will have various choices of position, regardless of one’s major. Moreover, it has...
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...The Pharmaceutical Industry 1. Origins and Evolution The modern pharmaceutical industry is a highly competitive non-assembled1 global industry. Its origins can be traced back to the nascent chemical industry of the late nineteenth century in the Upper Rhine Valley near Basel, Switzerland when dyestuffs were found to have antiseptic properties. A host of modern pharmaceutical companies all started out as Rhine-based family dyestuff and chemical companies e.g. Hoffman-La Roche, Sandoz, Ciba-Geigy (the product of a merger between Ciba and Geigy), Novartis2 etc. Most are still going strong today3. Over time many of these chemical companies moved into the production of pharmaceuticals and other synthetic chemicals and they gradually evolved into global players. The introduction and success of penicillin in the early forties and the relative success of other innovative drugs, institutionalized research and development (R&D) efforts in the industry 4. The industry expanded rapidly in the sixties, benefiting from new discoveries and a lax regulatory environment. During this period healthcare spending boomed as global economies prospered. The industry witnessed major developments in the seventies with the introduction of tighter regulatory controls, especially with the introduction of regulations governing the manufacture of ‘generics’5. The new regulations revoked permanent patents and established fixed periods on patent protection for branded products, a result of...
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...The History and Analysis of the Pharmaceutical Industry Pharmaceuticals Industry Analysis 1. 2. 3. 4. 5. 6. 7. 8. Origins and Evolution Environmental Analysis (PEST) Structural Industry Analysis (Porter’s Five Forces) Strategic Issues Facing The Industry Analysis of Key Industry Participants and Strategy Pfizer – SWOT Analysis and Strategy Review Conclusion References 2 2 4 5 6 8 10 10 i Pharmaceuticals Industry Analysis Executive Summary This report provides an analytical strategic review of the pharmaceutical industry; it’s origins, evolution, development and competitive environment within which it operates and the strategic issues facing the industry. The report also offers an overview of the industry, it’s key players, their strategic outlook, the impact of technological developments and other strategic issues facing the industry. The latter sections of the report focuses on the industry’s leading firm, Pfizer\Pharmacia. Page 1 Pharmaceuticals Industry Analysis The Pharmaceutical Industry 1. Origins and Evolution 1 The modern pharmaceutical industry is a highly competitive non-assembled global industry. Its origins can be traced back to the nascent chemical industry of the late nineteenth century in the Upper Rhine Valley near Basel, Switzerland when dyestuffs were found to have antiseptic properties. A host of modern pharmaceutical companies all started out as Rhine-based family dyestuff and chemical companies e.g. Hoffman-La Roche...
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...BAYER AG A Financial Analysis Executive Summary This paper tries to analyse the financial strength of Bayer AG and the other aspects associated with its capital structure and dividend policy. The organisation has been trying to change its financial structure to a management-driven one. This is evident from the reduction in the share capital of the organisation and the rise of debt capital, which it has been using efficiently to reduce its tax burden and control the overall cost of capital of the firm. The organisation has been paying dividends at a higher rate compared to its rivals which shows the sound financial health of the organisation. Contents Introduction 4 Market Risk 4 Bayer’s stock to market risk 4 Capital Structure of Bayer AG 7 Impact of Cost of Capital on Investment Decision 10 Dividend payout policy of Bayer 11 Conclusion 14 References 15 Appendices 17 Introduction Bayer AG is a pharmaceutical organisation which was founded in Germany in the year 1863 and is famous for its Aspirin brand. The group consists of almost 350 companies on all continents employing a workforce of approximately 120,000. The activities of the Group are segregated into four business segments. It is trying to transform its organisational structure into a management holding firm. By using this technique, the organisation is attempting to achieve a more dynamic and a flexible structure (Bayer, 2002). ...
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...elimination of child labor in India, we believe that with community prosperity, increased infrastructure, and growth, the need for child labor will disappear. We do not feel that Bayer should directly invest in creating schools for children or water treatment facilities, as these activities are clearly outside the bounds of Bayer’s expertise. We feel that there is a natural progression in prosperous societies to move away from child labor, as has been the case for most western nations in the last century. Although Bayer had been in India for over 100 years, its cottonseed business there was quite young. Bayer acquired Proagro Seed Pvt Ltd in 2002. Even though many companies in the country considered child labor “business as usual”, Bayer had a zero-tolerance policy for it, which was underscored by its corporate mission statement. After Bayer was named in a report produced by the India Committee of the Netherlands, which was the result of an investigation on child labor in India, the company found itself in a difficult position. Roughly 6% of Indian children between the ages of 5 and 14 participated in the labor force, accounting for 20% of India’s economy. Bayer could either exit the cultivating industry in India or develop a solution to the problem. Cotton seed production was a profitable activity for both Bayer and the farmers. Eliminating child labor would be an uphill battle in that cheap labor was the only leveraging tool available to create profit for farmers. Regulating the...
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...Herbert Bayer He is one of the most recognized designers to come from the Bauhaus institution and his theories of design are still taught in many schools today. A Graphic designer type face designer, painter, sculptor, and art director, environmental and interior designer, Herbert Bayer. Herbert Bayer was born Haag am Hausruck. He was both a student and teacher from 1921 to 1923 he attended the Bauhaus in Weimar, studying mural painting with Vasily Kandinsky and typograph. A great deal of Herbert Bayer design activity took place in Germany Italy and New York. (2) Widely recognized as the last living member of the Bauhaus and was instrumental in the development of the Atlantic Richfield Company's corporate art collection until his death in 1985. Herbert was a producer of innovative thinking and creative problem solving. His design...
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...Contents Business sector What is the main business of the group? Are there other activities, complementary businesses within the group? What are the main group's competitors? Which main risks (that are inherent to this business sector) does the company mention? Which hedging policies are put in place? Profitability Which indicators have been brought forward in the annual report of the company? Which specific targets are aimed at? How does the group state and assess the evolution of profitability in the annual report? Is there more recent public information about this issue? Where? Is this information in line with the one mentioned in the annual report? Is it indicating a similar evolution? What are the main propositions of the company to improve its profitability? Financing What is the global financing strategy of the group? What is the evolution of the financing cost (several indicators)? What is the shareholders’ remuneration program? What are your sources (of information) regarding this issue? Investments What are the main investment / disinvestment policies? How are these investments financed? What is the outlook of the company regarding this issue? Consolidation process What are the most important consolidated subsidiaries? (Eventually mention the approximate number of subsidiaries)? Are there associated companies? What is the evolution...
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...In the case of Bayer v. Beran, 49 N.Y.S.2d 2 were the shareholders alleged two causes of action. In the first, the shareholders alleged a breach of fiduciary duty by the directors in connection with a program of radio advertising. In the second, they alleged a breach of fiduciary duty relating to payments made to a corporate vice-president and director. However, the court did not fine these to be so therefore dismisses the action. Joan can not bring against board for breach of contract as a shareholder but breach of contract violation nor fiduciary duties. The fiduciary must subordinate his individual and private interests to his duty to the corporation whenever the two conflict. Winter v. Anderson, 242 App.Div. 430, 275 N.Y.S. 373. In an address delivered in 1934, Mr. Justice, now Chief Justice, Stone declared that the fiduciary principle of undivided loyalty was, in effect, 'the precept as old as Holy Writ, that 'a man cannot serve two masters'. More than a century ago equity gave a hospitable reception to that principle and the common law was not slow to follow in giving it recognition. No thinking man can believe that an economy built upon a business foundation can long endure without loyalty to that principle'. The 'business judgment rule', however, yields to the rule of...
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...of employees at these organizations who tested positive for exposure to the anthrax spores. In addition, there were at least two anthrax deaths for which the source of anthrax was not readily located. As a result of these exposures, from letters that were mailed on September 18, 2001, the most effective antibiotic for treating anthrax, ciprofloxacin, was in high demand. Bayer AG, a German company, owned the patent for this antibiotic, which it called Cipro. At the time the patent was slated to expire in December 2009. However, executives at headquarters for the company remained silent for weeks about the company’s ability to manufacture sufficient amounts of the patented antibiotic. Executives indicated that the company was concerned that if it appeared in the media it would give the appearance of taking advantage of the dire circumstances. Bayer’s history made it wary of any involvement in international battles. Bayer AG had to pay reparations following World War II and its patent for its world-famous aspirin, Bayer, was stripped from it and awarded to a U.S. company. It was not until 2000 that Bayer was once again permitted to use its name. The company’s low profile during the fall 2001 anthrax scares was deliberate and explained by executives as a desire to avoid appearing “exploitive of the problem” of the infections and illnesses. Frustrated with the lack of...
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