07.24.12
27. Bayer
$3.2 Billion ($47.2B total)
KEY EXECUTIVES:
Dr. Jörg Reinhardt, Chairman of Bayer HealthCare
Manfred Vehreschild, CFO
Alan Main, Head of Medical Care Division
Sam Liang, President and CEO, Medrad
Joseph Havrilla, Chief Technology & Strategy Officer, Medrad
Jeff Owoc, Sr. VP of Operations, Medrad
NO. OF EMPLOYEES: 55,700 (Bayer HealthCare total)
GLOBAL HEADQUARTERS: Leverkusen, Germany
As is the case with many companies on MPO’s Top 30 list, Bayer is a diverse multinational conglomerate, making everything from the ubiquitous Bayer aspirin in the familiar little yellow bottles to complex pharmaceuticals, as well as cotton used in your favorite pair of blue jeans and polyurethane raw materials are used in customized applications from car dashboards and athletic shoes.
In total, the company had $47.2 billion in sales. The healthcare sector of the company brought in $22 billion (47 percent of the companies revenue), which included pharmaceutical and consumer healthcare sales, but device-related businesses, part of the Medical Care division, were responsible for a small fraction of that—a total of nearly $3.2 billion (2.5 billion euros), mainly comprising blood glucose monitoring technology. Blood glucose monitoring devices include the single-strip Contour system and the multi-strip Breeze system. The company also sells the Contour USB meter, which features integrated diabetes management software and direct plug-in to computers, and the A1CNow system for determining long-term blood glucose control (A1c). Most of the meters are produced by various contract manufacturing partners. Device-related businesses also include the injection systems used in contrast agent injection systems for diagnostic and therapeutic medical procedures in computed tomography, magnetic resonance imaging and molecular imaging. During fiscal 2011, to strengthen its position in the diagnostic market, the company combined its diagnostic imaging business—formerly part of the Pharmaceuticals division—and its medical equipment business to form a new Radiology and Interventional business unit. The company’s Medrad division makes mechanical systems for removing blood clots from blood vessels—a sector into which Bayer has continued to invest. Medrad makes fluid injection systems for radiology and cardiology, endovascular devices for the safe treatment of cardiovascular disease, magnetic resonance-compatible accessories and provides equipment services.
Sales of the Medical Care division rose by 2.4 percent (through currency and company-reported “portfolio adjustments”). The Diabetes Care business grew, driven by the Contour line of blood glucose meters, according to the company. Sales of these systems rose in all regions, with Europe driving most of the growth—where the company profited from increased demand and new product introductions, particularly in Germany and the United Kingdom.
In September 2011, Warrendale, Pa.-based Medrad purchased Pathway Medical Technologies, Inc. to bolster its portfolio of vascular intervention technology. The purchase price was approximately $125 million, according to unconfirmed industry reports. Officially, details of the deal were not disclosed.
Kirkland, Wash.-based Pathway manufacturers products to mechanically remove arterial plaque. The company’s products clear out blockages in the leg, also known as peripheral arterial disease (PAD).
Pathway’s Jetstream devices, for example, allow for a minimally invasive procedure designed to restore circulation in the peripheral arteries by reducing vascular narrowing caused by plaque. With differential cutting, Jetstream products are designed to remove plaque without harming healthy tissue.
According to the U.S. Food and Drug Administration (FDA), more than 12 million people in the United States alone are estimated to have some form of PAD.
“The combination of Medrad and Pathway Medical Technologies underscores our strategic commitment to the treatment of patients in the growing interventional field,” Dr. Jorg Reinhardt, chairman of the Board of Management of Bayer HealthCare, said at the time the deal was announced.
“Pathway’s products complement Medrad Interventional’s current and future portfolio including our injectors, thrombectomy devices and the Cotavance paclitaxel coated balloon catheter with Paccocath technology and will enable us to extend value to customers and patients through broader product options to diagnose and treat PAD.”
Going forward, according to HealthCare division leadership, the company plans to pursue “attractive segments” such as medical data management tools for contrast injection systems and drug-coated balloon catheters to treat vascular disease.
In early September 2011, Medrad received CE Mark for its next generation Cotavance paclitaxel-coated balloon angioplasty catheter with Paccocath technology. The Cotavance balloon catheter is designed to incorporate innovations that include an improved paclitaxel coating process for controlled drug dosing and a new catheter platform with a full range of catheter sizes. The Cotavance balloon catheter is used in percutaneous interventions for the treatment of PAD and is approved for balloon dilation of stenotic lesions in the iliac and infrainguinal arteries while applying paclitaxel to the vessel wall to inhibit restenosis. The company is moving forward with the Investigational Device Exemption process as one of the steps in gaining FDA approval for Cotavance in the United States. Paccocath technology is a proprietary drug matrix applied to the balloon of an angioplasty catheter. The matrix consists of paclitaxel, long used in drug-eluting stents to treat cardiovascular disease, and Ultravist 370, a radiologic contrast agent. When the balloon is inflated to dilate the narrowed vessel, paclitaxel is delivered directly to the diseased area. Bayer Pharma AG is the owner of the Paccocath technology.
Medrad began fiscal 2011 with new management. Jack Darby joined the company as vice president of Medrad Interventional. Darby will act as general manager of the diagnostic and therapeutic lines of the business on a global scale, and also will join Medrad’s executive leadership team. He has 20 years of experience in the medical device industry, with most of those years in the interventional cardiology space. Darby previously served as senior vice president of Global Marketing and Distributor Sales at AGA Medical Corporation. Prior to AGA, he spent more than 15 years at Cordis, a Johnson & Johnson company, starting as an angiographic sales representative.
“Jack’s broad base of experience in the interventional space and combination drug-device products will greatly complement our patient-focused goals for the interventional business,” said Medrad President and CEO Sam Liang. “With the support of his leadership, we plan to extend our product innovation and customer satisfaction footprint within this growing, global market.”
For 2012, the company kicked off the new year with expansion in the medical device space. In January, Bayer HealthCare opened a new, expanded facility for the Interventional franchise within its Medical Care’s Radiology and Interventional business. Located at its Coon Rapids, Minn., headquarters site, the new facility features research and development laboratories as well as manufacturing clean rooms. The Interventional franchise discovers, markets and manufactures therapeutic medical devices for the treatment of vascular occlusions. The expansion nearly doubles the company’s infrastructure in Minnesota, home of its Interventional franchise, and provides room for future growth in cardiovascular and peripheral vascular disease device lines.
The new building comprises roughly 80,000 square feet of space. Scientists and research technicians now are working in new laboratory space and the company plans to use new clean rooms to expand production of the Cotavance drug-eluting balloon.
“This facility embodies the spirit of Bayer’s mission—‘Science for a Better Life’—through design that encourages employees to collaborate on new product ideas and work efficiently to manufacture interventional devices that provide physicians with less-invasive solutions—alternatives to surgery—for a growing number of medical conditions,” said Darby.
The facility employs approximately 225 people.
$3.2 Billion ($47.2B total)
KEY EXECUTIVES:
Dr. Jörg Reinhardt, Chairman of Bayer HealthCare
Manfred Vehreschild, CFO
Alan Main, Head of Medical Care Division
Sam Liang, President and CEO, Medrad
Joseph Havrilla, Chief Technology & Strategy Officer, Medrad
Jeff Owoc, Sr. VP of Operations, Medrad
NO. OF EMPLOYEES: 55,700 (Bayer HealthCare total)
GLOBAL HEADQUARTERS: Leverkusen, Germany
As is the case with many companies on MPO’s Top 30 list, Bayer is a diverse multinational conglomerate, making everything from the ubiquitous Bayer aspirin in the familiar little yellow bottles to complex pharmaceuticals, as well as cotton used in your favorite pair of blue jeans and polyurethane raw materials are used in customized applications from car dashboards and athletic shoes.
In total, the company had $47.2 billion in sales. The healthcare sector of the company brought in $22 billion (47 percent of the companies revenue), which included pharmaceutical and consumer healthcare sales, but device-related businesses, part of the Medical Care division, were responsible for a small fraction of that—a total of nearly $3.2 billion (2.5 billion euros), mainly comprising blood glucose monitoring technology. Blood glucose monitoring devices include the single-strip Contour system and the multi-strip Breeze system. The company also sells the Contour USB meter, which features integrated diabetes management software and direct plug-in to computers, and the A1CNow system for determining long-term blood glucose control (A1c). Most of the meters are produced by various contract manufacturing partners. Device-related businesses also include the injection systems used in contrast agent injection systems for diagnostic and therapeutic medical procedures in computed tomography, magnetic resonance imaging and molecular imaging. During fiscal 2011, to strengthen its position in the diagnostic market, the company combined its diagnostic imaging business—formerly part of the Pharmaceuticals division—and its medical equipment business to form a new Radiology and Interventional business unit. The company’s Medrad division makes mechanical systems for removing blood clots from blood vessels—a sector into which Bayer has continued to invest. Medrad makes fluid injection systems for radiology and cardiology, endovascular devices for the safe treatment of cardiovascular disease, magnetic resonance-compatible accessories and provides equipment services.
Sales of the Medical Care division rose by 2.4 percent (through currency and company-reported “portfolio adjustments”). The Diabetes Care business grew, driven by the Contour line of blood glucose meters, according to the company. Sales of these systems rose in all regions, with Europe driving most of the growth—where the company profited from increased demand and new product introductions, particularly in Germany and the United Kingdom.
In September 2011, Warrendale, Pa.-based Medrad purchased Pathway Medical Technologies, Inc. to bolster its portfolio of vascular intervention technology. The purchase price was approximately $125 million, according to unconfirmed industry reports. Officially, details of the deal were not disclosed.
Kirkland, Wash.-based Pathway manufacturers products to mechanically remove arterial plaque. The company’s products clear out blockages in the leg, also known as peripheral arterial disease (PAD).
Pathway’s Jetstream devices, for example, allow for a minimally invasive procedure designed to restore circulation in the peripheral arteries by reducing vascular narrowing caused by plaque. With differential cutting, Jetstream products are designed to remove plaque without harming healthy tissue.
According to the U.S. Food and Drug Administration (FDA), more than 12 million people in the United States alone are estimated to have some form of PAD.
“The combination of Medrad and Pathway Medical Technologies underscores our strategic commitment to the treatment of patients in the growing interventional field,” Dr. Jorg Reinhardt, chairman of the Board of Management of Bayer HealthCare, said at the time the deal was announced.
“Pathway’s products complement Medrad Interventional’s current and future portfolio including our injectors, thrombectomy devices and the Cotavance paclitaxel coated balloon catheter with Paccocath technology and will enable us to extend value to customers and patients through broader product options to diagnose and treat PAD.”
Going forward, according to HealthCare division leadership, the company plans to pursue “attractive segments” such as medical data management tools for contrast injection systems and drug-coated balloon catheters to treat vascular disease.
In early September 2011, Medrad received CE Mark for its next generation Cotavance paclitaxel-coated balloon angioplasty catheter with Paccocath technology. The Cotavance balloon catheter is designed to incorporate innovations that include an improved paclitaxel coating process for controlled drug dosing and a new catheter platform with a full range of catheter sizes. The Cotavance balloon catheter is used in percutaneous interventions for the treatment of PAD and is approved for balloon dilation of stenotic lesions in the iliac and infrainguinal arteries while applying paclitaxel to the vessel wall to inhibit restenosis. The company is moving forward with the Investigational Device Exemption process as one of the steps in gaining FDA approval for Cotavance in the United States. Paccocath technology is a proprietary drug matrix applied to the balloon of an angioplasty catheter. The matrix consists of paclitaxel, long used in drug-eluting stents to treat cardiovascular disease, and Ultravist 370, a radiologic contrast agent. When the balloon is inflated to dilate the narrowed vessel, paclitaxel is delivered directly to the diseased area. Bayer Pharma AG is the owner of the Paccocath technology.
Medrad began fiscal 2011 with new management. Jack Darby joined the company as vice president of Medrad Interventional. Darby will act as general manager of the diagnostic and therapeutic lines of the business on a global scale, and also will join Medrad’s executive leadership team. He has 20 years of experience in the medical device industry, with most of those years in the interventional cardiology space. Darby previously served as senior vice president of Global Marketing and Distributor Sales at AGA Medical Corporation. Prior to AGA, he spent more than 15 years at Cordis, a Johnson & Johnson company, starting as an angiographic sales representative.
“Jack’s broad base of experience in the interventional space and combination drug-device products will greatly complement our patient-focused goals for the interventional business,” said Medrad President and CEO Sam Liang. “With the support of his leadership, we plan to extend our product innovation and customer satisfaction footprint within this growing, global market.”
For 2012, the company kicked off the new year with expansion in the medical device space. In January, Bayer HealthCare opened a new, expanded facility for the Interventional franchise within its Medical Care’s Radiology and Interventional business. Located at its Coon Rapids, Minn., headquarters site, the new facility features research and development laboratories as well as manufacturing clean rooms. The Interventional franchise discovers, markets and manufactures therapeutic medical devices for the treatment of vascular occlusions. The expansion nearly doubles the company’s infrastructure in Minnesota, home of its Interventional franchise, and provides room for future growth in cardiovascular and peripheral vascular disease device lines.
The new building comprises roughly 80,000 square feet of space. Scientists and research technicians now are working in new laboratory space and the company plans to use new clean rooms to expand production of the Cotavance drug-eluting balloon.
“This facility embodies the spirit of Bayer’s mission—‘Science for a Better Life’—through design that encourages employees to collaborate on new product ideas and work efficiently to manufacture interventional devices that provide physicians with less-invasive solutions—alternatives to surgery—for a growing number of medical conditions,” said Darby.
The facility employs approximately 225 people.
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