The Rise of Pharmaceutical Companies
Pharmaceutical companies began forming in the late 1800s for the purpose of developing and selling drugs and healthcare related products. Many grew as an offshoot of existing chemical companies.
One of the first Pharmaceutical companies, Bayer was started in Germany and it has a history that illustrates the growth of many Pharmaceutical companies. In 1863 the company was founded as a chemical factory that produced dyes. The company became international as early as 1865 when it purchased an interest in a coal tar dye factory in the United States and began exporting chemicals used in production. In 1881 the stock company was formed and the Friedr. Bayer & Co. was listed on the stock exchange.
Bayer scientists soon began making drug discoveries and a Pharmaceutical Department was formed. A huge event for Bayer and the world came when Bayer researcher Dr. Felix Hoffmann first synthesized acetylsalicylic acid, the active ingredient in Aspirin. Acetylsalicylic acid was a breakthrough in the treatment of painful, inflammatory and feverish states. The substance is well tolerated by patients and it has widespread pharmacological traits that make it a relevant therapy for many conditions. It remains the world’s favorite pain killer and is recommended by physicians for preventative care in areas of heart disease and stroke prevention. The company's growth was fuelled by aspirin sales, and then by another Medically important discovery, the use of sulfonimides as a potent antibacterial and anti- parasitic drug used for treatment for many infectious diseases. This was especially important since the necessity for wound abrasion and treatment grew as a result of the First World War. Bayer researcher Gerhard Domagk was awarded the Nobel Prize for Medicine for this discovery.
The company expanded as an international chemicals and health care group from then on, establishing research and production sites in the United States, and branching into agricultural chemicals. Bayer also became the world's largest suppliers of diagnostics systems and reagents for clinical chemistry. The Bayer Corporation has acquired several pharmaceutical companies, including Miles and Sterling.
The phenomenal growth and prosperity of Bayer illustrates several features of pharmaceutical companies in general. It, like most Pharmaceutical companies, has braches, factories and subsidiaries worldwide and represents a conglomerate of several different international companies that produce many different brands of products. Another feature it shares with similar companies is the strength and stability of its stock. Pharmaceutical companies are among the best performing stocks in the world and, barring any product disasters such as thalidomide in the late 1960's, are among the safest investments.
by Sally.Anderson 19 years ago