PETRI DISH PERSPECTIVES: BIOTECH UNLEASHED

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PETRI DISH PERSPECTIVES: BIOTECH UNLEASHED

Episode 9: Bayer

June 26, 2025 • Manead Khin • Season 1 • Episode 9

🎧 From Dye Pots to Blockbusters: The Bayer Story
In this episode of Petri Dish Perspectives: Biotech Unleashed, host Manead takes you on a journey through Bayer’s 160+ year evolution, from its 1863 roots in coal tar dyes to becoming the maker of Aspirin 💊, Xarelto ❤️, and Eylea 👁️. We explore how a dye salesman and a master dyer built a pharma empire, the game-changing invention of Aspirin, blockbuster therapies, the turbulent Monsanto acquisition 🌾⚖️, and the company’s high-stakes reinvention under CEO Bill Anderson.

🧬 Science, strategy, and resilience — Bayer’s story is biotech history in motion.

🎙️ Tune in for a 30-min deep dive into one of the world’s most iconic life science companies.

#Bayer #Biotech #PetriDishPerspectives #BiotechPodcast #ScienceStorytelling #BillAnderson #HealthcareLeadership

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Intro
🎙️ [Engaging music fades in]
Hello and welcome to Petri Dish Perspectives: Biotech Unleashed, the podcast where we geek out about science and the companies shaping the future of healthcare. I’m your host, Manead, and I’m a scientist with a PhD background in cancer biology and analytical chemistry. With every episode, my goal is to deliver digestible pieces of information on healthcare companies under 30 mins.

Today, we're diving into the fascinating journey of Bayer—a German dye-maker turned global powerhouse in pharmaceuticals, crop science, and consumer health.

Quick disclaimer, I give full credit to all original articles cited in the transcript!

Grab your coffee or tea, settle in, and let's jump right in!

Segment 1: The Origins of Bayer – From Dye Lab to Drug Giant

Let’s rewind the clock to 1863, in what was then Prussia — now part of Germany. This was the era of coal tar chemistry, when vibrant dyes were all the rage and synthetic chemistry was just beginning to reshape industries.

Friedrich Bayer was born in 1825 in Wuppertal-Barmen, part of Germany’s industrial heartland. Coming from a family involved in commerce, he trained as a merchant and developed a strong sense for business and trade. Early in his career, he worked as a dye salesman, which gave him insight into the rapidly growing textile and chemical industries. His experience traveling and selling dyes exposed him to both the market demand and the limitations of natural dye sources—planting the seed for synthetic innovation.

Johann Friedrich Weskott, born in 1821, also hailed from Barmen. He came from a family of dyers and followed in their footsteps to become a skilled master dyer. Weskott was deeply knowledgeable in the technical side of dyeing—particularly with the use of synthetic chemicals that were starting to emerge in the mid-19th century. His expertise in dye application made him the perfect complement to Bayer’s commercial instincts.

Together, these two men—one a merchant, the other a craftsman—founded a small dye firm in 1863 that would eventually evolve into the global pharmaceutical and chemical powerhouse we know today as Bayer AG. Originally, the company was focused on manufacturing synthetic dyes, which were in high demand in Europe’s booming textile market.

But Friedrich Bayer had a broader vision. He saw the potential of coal tar derivatives not just in textiles, but in medicine. By the late 1800s, Bayer had established its first chemical laboratory, hiring a young team of chemists to explore applications beyond pigments. One of their early breakthroughs came from a little-known compound: acetylsalicylic acid.

Even in its early days, Bayer demonstrated what would become a defining trait — using chemistry to transform everyday life. In a sense, Bayer was biotech before biotech existed. They weren’t just making products; they were shaping entirely new categories of science and industry.

By the 1880s, Bayer had expanded internationally, establishing offices in the U.S. and across Europe. The company embraced research as a central pillar, investing in laboratories and forming one of the earliest industrial R&D departments in the world — a move that gave them a huge competitive edge.

Bayer also stood out for how it blended science with branding. While many drug companies of the time sold generic formulations, Bayer trademarked its drugs — a bold strategy that created product recognition and consumer trust. That strategy would pay off immensely with the company’s most famous invention: Aspirin.

And like many legacy pharmas, Bayer’s story doesn’t unfold in a straight line. It includes war, reinvention, reintegration, and later — controversial corporate decisions. But at its core, Bayer’s origin is about two things: curiosity and chemistry. A chemist’s drive to tinker with molecules, and a businessman’s eye for where those molecules could reshape markets — from colorful fabric to powerful medicine.

Segment 2: Early Growth & Iconic Invention
By 1899, Bayer had already made its mark. That year, a chemist named Felix Hoffmann, working at Bayer's labs, synthesized a milder form of acetylsalicylic acid—later branded as Aspirin. It wasn’t just a breakthrough in pain relief; it was a revolution. Aspirin became one of the first drugs to be mass-produced with consistent dosage, safety, and branding—a symbol of modern pharmaceuticals. Sales skyrocketed, rapidly funding Bayer’s expansion into other drug classes and global markets. Aspirin’s success cemented Bayer’s reputation, paving the way for decades of pharmaceutical innovation. Aspirin is used to relieve mild to moderate pain, such as headaches, toothaches, menstrual cramps, and muscle aches. Bayer, a publicly traded company, had its Initial Public Offering (IPO) on October 2, 1953, on the Frankfurt Stock Exchange. In 1998, Bayer’s stock is at approx. $10 a piece.

Segment 3: Building a Pharma Powerhouse
Throughout the early 20th century, Bayer broadened its expertise beyond analgesics. The company pioneered early drugs in sedatives and antihistamines, moving into areas like cardiovascular medicine. Post‑World War II, Bayer recovered from wartime disruptions to invest heavily in R&D. They began making significant strides in oncology, neurology, and endocrine therapies—reaching beyond Europe into North America and Asia. Their diversified portfolio reflected a shift from commodity chemicals to research-driven biologics.

Segment 4: Blockbusters & Rising Fortunes
Fast-forward to recent decades, and Bayer has built a lineup of powerhouse therapies:

Xarelto (rivaroxaban): Xarelto, or rivaroxaban, marked a pivotal shift in how we treat and prevent dangerous blood clots. Developed by Bayer and co-marketed with Johnson & Johnson, this drug belongs to a class called direct oral anticoagulants (DOACs). Its target? Factor Xa — a key enzyme in the blood-clotting cascade. Before Xarelto, the gold standard for anticoagulation was warfarin, a decades-old drug that required frequent blood tests, dietary restrictions, and constant dose adjustments. Warfarin worked — but it was finicky, inconvenient, and risky if not managed precisely. Xarelto simplified all of that. Approved by the FDA in 2011, Xarelto was a game changer. Patients could now take a fixed daily dose without constant INR monitoring. Indications quickly expanded from treating deep vein thrombosis (DVT) and pulmonary embolism (PE) to preventing stroke in patients with atrial fibrillation. And it wasn’t just clinical innovation — Bayer strategically invested in global trials, expanding Xarelto’s label across numerous indications. That helped push it into blockbuster territory. By the mid-2010s, it had become one of Bayer’s top revenue-generating products, with global sales surpassing €4 billion annually. Xarelto continues to play a vital role in cardiovascular health, and it helped solidify Bayer’s reputation in modern-day thromboembolic management.
Eylea (aflibercept): Imagine gradually losing your vision due to age-related macular degeneration (AMD) or diabetic retinopathy. Then imagine a drug that could stop — or even reverse — that damage. That’s what Eylea offers. Aflibercept, marketed as Eylea, is a VEGF inhibitor — it blocks vascular endothelial growth factor, a protein that promotes abnormal blood vessel growth in the retina, leading to fluid leakage, damage, and vision loss. Co-developed by Regeneron and Bayer, the drug was first approved by the FDA in 2011 for wet AMD, the more aggressive form of macular degeneration. What set Eylea apart from earlier VEGF inhibitors like Lucentis was its longer dosing interval — many patients only needed injections every 8 weeks instead of every 4. That meant fewer clinic visits, better compliance, and improved patient quality of life. Eylea’s success has been massive. It's now approved for multiple retinal conditions — including diabetic macular edema and retinal vein occlusion — and has generated billions in revenue globally. Under their partnership, Regeneron commercialized Eylea in the U.S., while Bayer held rights for ex-U.S. markets, especially in Europe and Asia. With newer long-acting versions and combination regimens in development, Eylea continues to anchor Bayer’s ophthalmology franchise, helping millions worldwide preserve their sight.
Gaucher & Rare Disease Enzymes: Through strategic acquisitions, Bayer expanded into rare-disease treatments by developing and distributing life-saving enzyme therapies for conditions like Gaucher’s and Fabry’s disease.

These successes established Bayer as a true specialty-pharma giant—no longer just a chemical powerhouse, but a leader in high-value medicine.

Segment 5: The Monsanto Chapter & Regeneration Under Scrutiny
In 2018, Bayer made its most controversial move: acquiring Monsanto for roughly $63 billion. The idea? Diversify into agrochemicals and seeds—tying crop science with human health in a mega life-science entity. In theory, it made sense: food and health are intertwined. But, in practice, things got messy. Monsanto’s glyphosate-based Roundup was already embroiled in lawsuits claiming it caused cancer. Post-acquisition, Bayer inherited those legal battles—costing tens of billions in settlements and denting its stock. The experience has been a major lesson: even strategic diversification brings immense cultural and legal risk if due diligence and image management fall short. Today, Bayer has written down much of Monsanto's value and is rebuilding its reputation—recommitting to core pharma and health science expertise.

Segment 6: Turnaround & New Leadership
Bill Anderson took over as CEO in mid-2023 with a bold “dynamic shared ownership” plan, slashing dozens of management layers and promising cost savings of €2 billion/year by 2026. Despite a tough 2024—€2.6 billion net loss, €4 billion Q1 2025 profit drop, first German factory closure in 161 years—Anderson believes 2025 is the pivotal turnaround year.

Segment 7: What’s Next for Bayer?
Bayer’s focus now:

Resolve litigation by the end of 2026. Bayer is currently facing numerous lawsuits related to its Roundup herbicide, specifically alleging that it causes cancer, primarily non-Hodgkin lymphoma. These lawsuits stem from the acquisition of Monsanto, which developed Roundup, and have resulted in significant financial settlements and ongoing legal battles.
Deleverage €32 billion debt.
Grow pharmaceuticals—especially Nubeqa, Kerendia, men’s heart drug Beyonttra®, and elinzanetant for menopause
Boost Crop Science profitability.
Continue consumer health growth.
Leverage biotech through cell and gene therapy via AskBio acquisition.

As of June 2025, Bayer’s market cap is $30.42B and the stock is at $7.77 a piece.

Segment 8: People Who Made Their Mark
Let’s give a quick shout-out to two key figures in Bayer’s history — one who helped build it, and one trying to reshape it.

Friedrich Bayer, a dye salesman, founded the company in 1863 with a vision for industrial chemistry. While he started in dyes, his legacy is tied to a game-changer: Aspirin. Though he didn’t live to see it, Bayer’s labs developed acetylsalicylic acid in the 1890s, turning it into one of the world’s first blockbuster drugs — and forever linking his name to medicine.

Fast-forward to today, Bill Anderson took the helm as CEO in 2023 during a rough patch for Bayer. With lawsuits, investor pressure, and identity crisis post-Monsanto, Anderson — a biotech veteran from Genentech and Roche — is pushing for a bold reinvention. He’s breaking silos, streamlining R&D, and bringing startup speed to a legacy giant.

From Friedrich’s innovation to Bill’s transformation — these two leaders bookend Bayer’s ongoing evolution.

Segment 9: The Keys to Bayer’s Success & Survival
What sets Bayer apart?

Scientific Innovation: from Aspirin to genome-informed pharmaceuticals.
Diversified Portfolio: spanning pharma, consumer health, and crop science.
Bold M&A: with acquisitions like Monsanto and Schering.
Resilience & R&D: €5.4 billion R&D spend in 2024
Change-focused Leadership: dynamic shared ownership and streamlined operations.

Outro
🎵 [Uplifting music begins]
That’s a wrap on today’s Petri Dish Perspectives! I hope this deep dive into Bayer—its rise, struggles, and bold pivot under a new leader—sparked your curiosity. If you enjoyed it, please subscribe, leave a review, and share with your fellow biotech nerds. Got another company in mind? Send me a note—I’d love to cover it.

Until next time, stay curious and keep exploring the science shaping our world!

🎵 [Music crescendos and fades out]

References

People on this episode

Manead Khin

Host