By Maxine Shapiro, KERA 90.1 business commentator
Dallas, TX – If you have arthritis, risk of a stroke, heart condition, or live on this planet, then you need to know the accomplishment of Felix Hoffman. Here's another hint. The dye company that he was working for in Germany was called Bayer. I'm Maxine Shapiro with KERA Marketplace Midday.
In 1863, Friedrich Bayer opened a modest little company in Barmen, Germany to produce dyes. Dr. Felix Hoffman was working as a chemist for Bayer in 1887 when he needed a way to alleviate his father's pain of arthritis. He used salicin, and synthesized acetylsalicylic acid to produce a powder. It was officially named Aspirin when it was patented March 6, 1889.
By the turn of the century, Bayer's aspirin was the most used drug in the world. Profits soared after securing an American patent in 1900. That same year, the powder became an inconvenience, so the Bayer scientists put there heads together and voila, the tablet was born. The U.S. was Bayer's pot of gold. But not for long.
Enter World War I, and in 1917, a government agency called the "Alien Property Custodian" seized all properties owned by enemy aliens. Bayer was put on the auction block. Sterling Drug Company bought the American patent for aspirin, the use of the name Bayer in America, and the famous white cross logo for a little more than $5 million. What a deal.
Then back in Germany, Bayer lost its name when it merged with another conglomerate, split again after World War II and in 1972, became today's Bayer AG. But they rightfully wanted the North American market back. 1994 was its window of opportunity. A British firm bought the full line of international over-the-counter medication from Sterling, including Bayer Aspirin. And Bayer AG bought its Bayer Aspirin back for $1 billion. Kinda warms your heart.
So the next time the boss gets under your skin, or your kids are just being kids and you reach for the aspirin bottle, think of Bayer and Felix Hoffman. For KERA Marketplace Midday, I'm Maxine Shapiro.
Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 p.m. To contact Maxine Shapiro, please send emails to mshapiro@kera.org.