The inception of a pharmaceutical giant like Bayer was pretty humble. It all began when two men came together to satisfy their natural curiosity using kitchen stoves. The dyer Johann Friedrich Weskott and businessman Friedrich Bayer experimented for days before discovering the dye fuchsine.
It was a magenta color dye that quickly became popular over natural dyes for its brightness and purity. That’s how the two men laid the foundation for Friedr. Bayer et. Comp. in Wuppertal-Barmen on August 1st, 1863.
The startup, which was considered to have tremendous potential, gradually merged with five other German enterprises to form IG Farben in 1925 – the largest pharmaceutical and chemical company. Even today, this German juggernaut is renowned for its pharmaceutical drugs, dyes, synthetic rubbers, insecticides, and other chemicals.
Sadly, this is precisely where the problem enters the picture. Despite having total assets worth over $136 billion in 2022, Bayer has received ongoing criticism for its notorious actions.
In this article, we will explore some deeply disturbing parts of the company’s history that continue to stain its present market repute.
Bayer Accused of Human Experiments at Auschwitz
The Nazi concentration camp of Auschwitz has become a major Memorial Site for the entire European continent. It is here that one can experience the smell of death still lingering fresh in the air.
A group of complex 40+ concentration camps and extermination centers, Auschwitz was used by the Nazis to conduct inhuman experiments on Jewish prisoners. It is believed that IG Farben employed slaves to labor in the factories constructed in Auschwitz III or the Monowitz concentration camp.
Not only that but the company likely has blood on its hands by being involved directly in the experiments. Eva Mozes Kor, a holocaust survivor, filed a lawsuit against Bayer in 1999, alleging that the company’s pharmaceutical drugs were used to conduct Nazi experiments.
Bayer is said to have been an advocate for heroin use among Jewish children for colds and coughs till 1912. Furthermore, Josef Mengele, the infamous Nazi physician who was nicknamed ‘Angel of Death’ for his twin experiments worked closely with Bayer. Healthy individuals were injected with infection-causing microorganisms to test the efficacy of the company’s medicines.
Failure to Reveal Drug Risk Study
By 1998, Bayer had emerged with a breakthrough drug for patients undergoing heart surgery. Trasylol was used for heart patients just before surgery to reduce bleeding and the need for blood transfusions.
The Food & Drug Administration (FDA) gave its approval in August 1998. However, the happiness was short-lived. In 2006, Federal drug officials discovered that the drug manufacturer had failed to disclose an important study associated with Trasylol.
Even the preliminary results of the study pointed towards complications like serious kidney damage, stroke, and death in some cases. The FDA immediately issued a public health advisory notice that Trasylol’s use should be limited to patients in whom the risk of blood loss was greater than the drug’s injuries.
When questioned about the lack of disclosure, Bayer responded in a written statement that its failure to inform the FDA was a ‘mistake.’ It further stated that the data was not immediately shared because it was preliminary. Despite the harm done to its reputation for transparency, the company stood behind Trasylol’s safety.
The Merger with Monsanto: A Marriage Made in Hell
Given Bayer’s shoddy trail of excuses for notoriety, one could imagine that matters would only get worse (and they did). All hell broke loose when Bayer declared its acquisition of Monsanto in 2018. Monsanto itself had an ill repute for producing chemicals that were toxic to the environment and human health.
Behind the garb of sustainable agriculture, it was clearing its way to control the worldwide food supply. The public sentiments towards this agrochemical giant were sour enough to kickstart the ‘March against Monsanto’ in 2013.
Given Monsanto’s stained history, why would Bayer want to acquire it? According to the company, it was simply following its passion for tackling societal challenges. It believed that the merger would enable them to increase Life Science focus and drive the next generation of farming.
However, people knew that it was just a sorry attempt to blot out Monsanto’s deadly sins. As expected, Bayer had to become the propitiation in the process. For instance – Monsanto had produced a group of complex chemicals called Polychlorinated Biphenyls (PCBs) in 1929.
They were commercially used in heat transfer fluids, electrical transformers, capacitors, hydraulic fluids, and plasticizers. After nearly five decades, the production was banned in 1979 due to serious health risks. It was found that PCB exposure symptoms included severe acne, nausea, neurological issues, and liver impairment.
Despite the ban, numerous school buildings’ construction materials and fluorescent lighting ballasts still contain these chemicals. As a result, teachers and students experienced the aforementioned health issues. Schools nationwide sued the manufacturer, Monsanto, for the injuries.
According to TorHoerman Law’s most recent update, North Carolina State University’s Poe Hall was shut down as hazardous levels of PCBs were detected. Bayer has already paid millions of dollars in these lawsuit settlements. In the latest jury verdict, the company had to pay $857 million for seven PCB case settlements.
Attorneys are accepting more lawsuit filings, which means Bayer still has a lot more funds to lose. Besides the PCB lawsuit, the company has had to cover up for Monsanto’s deadly Roundup weed killer. Over 165,000 lawsuits were filed due to the 1974 glyphosate-based herbicide’s carcinogenic effects.
Agricultural farmers, gardeners, and landscapers developed cancer because of prolonged exposure to the weed killer (precisely the non-Hodgkin’s lymphoma). For one particular case, Bayer has had to part with $2.2 billion in the form of settlements.
Notwithstanding its attempts to avoid transparency, Bayer’s dark past is on display for all to see. Is it just a result of poor business choices or a carefully planned evil? Whatever it is, Bayer’s financial position is currently in trouble.
The company’s new CEO, Bill Anderson, has signaled significant layoffs and business shake-ups to tackle the issue. He anticipates recovering Bayer’s shares by fixing legal woes. Hopefully, this will not involve any more notoriety and shady business practices.
Ingrid Maldine is a business writer, editor and management consultant with extensive experience writing and consulting for both start-ups and long established companies. She has ten years management and leadership experience gained at BSkyB in London and Viva Travel Guides in Quito, Ecuador, giving her a depth of insight into innovation in international business. With an MBA from the University of Hull and many years of experience running her own business consultancy, Ingrid’s background allows her to connect with a diverse range of clients, including cutting edge technology and web-based start-ups but also multinationals in need of assistance. Ingrid has played a defining role in shaping organizational strategy for a wide range of different organizations, including for-profit, NGOs and charities. Ingrid has also served on the Board of Directors for the South American Explorers Club in Quito, Ecuador.
