COLOGNE, GERmany--It is no secret that, for a company to stay ahead of the money-making game, it must innovate. And for a firm that has been around for about 150 years, Bayer AG has learned to take that concept to heart.
According to Werner Wenning, chairman of Bayer’s board of management, innovation entails a huge price.
“Innovation has always been the focus of our corporate strategy,” Wenning said during a press conference held here recently. “That’s because innovative capability is a crucial advantage in the global arena.
“We invest heavily in order to keep [that advantage].”
Having upheld the importance of innovation, Wenning said, Bayer AG puts its money where its mouth is.
Billions for research
Year after year, Bayer invests heavily in research and development (R&D) to come up with new discoveries with which to improve existing products or start off with a new line.
In 2007 alone, Bayer invested 2.6 billion euros for R&D. The following year, the budget was raised to 2.8 billion euros. For this year, Bayer AG’s board is eyeing an even higher amount for R&D, Wenning said.
To further strengthen its R&D team and to boost its efforts on coming up with innovative products, Bayer AG acquired Direvo Biotech AG, a bio-technology research laboratory in Cologne last October.
Strong performance
Also, Bayer recently tied up with the German Cancer Research Center in its bid to come up with cancer treatment products.
Bayer and the research center will invest a combined 3.5 million euros in the next two years to develop cancer-fighting medicine.
In the end, backing product innovations with huge investments pays off for Bayer, Wenning. Wenning went on to cite the company’s strong financial performance over the years.
In 2007, led by its health care business, Bayer AG claims to have generated 32.4 billion euros in sales revenues. It is still among the world’s Top 10 biggest earning companies in the field of biologicals.
As for non-material gains, Bayer AG takes pride in seeing that its products--borne of expensive and tedious scientific research--have helped improve the quality of people’s lives.
New milestones
During the conference, Wenning announced several ongoing R&D projects of Bayer AG that, once completed, would serve as new milestones in the field of science.
One of these projects, under Bayer Health Care, is the development of an imaging technology that will help doctors detect Alzheimer’s disease at a very early stage, possibly even before the clinical stage.
“The diagnosis of diseases still remains a demanding task,” Wenning said. “Imaging techniques for a reliable clinical diagnosis of, for example, Alzheimer’s disease, are complex and limited. Currently, a definite diagnosis of it can only be conducted by autopsy.”
Cancer treatment
But he said that with the technology being developed by Bayer AG, determining Alzheimer’s at a very early stage and preventing its development could be possible.
Another ongoing project of Bayer HealthCare is the development of its existing medicine Nexavar to be able to treat other types of cancers.
Currently, Wenning said, the drug is used only to help treat kidney and liver cancers.
According to Bayer’s research, there are 12 million more people being diagnosed with cancer every year. Wenning said studies like these provide Bayer the challenge to constantly come up with solutions.
Bayer HealthCare is likewise developing active ingredients called “riociguat” and “cinaciguat” to treat certain types of hypertension and to counter heart failure, respectively.
Help for farmers
As far as Bayer Crop Science is concerned, the company’s scientists are working on the development of a product that will make crops more tolerant to stresses caused by too much heat or cold.
According to Wenning, this project is very timely, considering that farmers now are facing climate-related problems, putting their crops at risk.
Wenning said Bayer AG is excited about the completion of all these projects, which, once finished, would add to the company’s countless achievements in the field scientific research.
The multinational company, which started out as a dye producer in a small town in Germany in 1863, now maintains a presence in almost every country.
It is well known for its wide range of products in healthcare, crop protection and material science.
Bayer Health Care has produced the so-called wonder drug Aspirin, the anti-fungal cream Canesten, Adalat (for cardiovascular problems), Avalox (for pneumonia), Glucobay (for diabetes) and Kogenate (for hemophilia).
Bayer Crop Science has produced several pest-control products, the newest of which is Movento, which farmers use to protect their crops.
Bayer Material Science also has been lauded for technological breakthroughs and creations. The end products are used by several industries, including car manufacturing, power generation, etc.
The company is credited for its creation of polyurethanes--a type of plastic used in the production of car seats, television sets, furniture surfaces, shoes--among other products.
Ups and downs
Like any other businesses, Bayer AG has had its ups and downs.
Wars and sociopolitical events that erupted since the company was put up in the 1860s had led to disruptions in operations and even to its dissolution in 1945.
But the company was again put up in 1951, later branching out in other countries.
In the Philippines, Bayer AG established its presence via two subsidiaries in 1962.
The two eventually merged in 1979 becoming what is now known as Bayer Philippines Inc.
Indeed, Bayer AG already has a long history of improving people’s lives, becoming one of the world’s most respected multinational companies since it was put up in the 1860s by businessman Friedrich Bayer and dye maker Johann Friedrich Weskott.
But with its unwavering dedication to innovation, Bayer AG is confident it will be able to continue doing good business for more years to come.
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