Chairman’s Letter
Research and Development
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Research and Development
 Bayer HealthCare |
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In 2006 Bayer invested a total of €2,297 million in research and development. It is particularly important for us to continuously optimize our product portfolio and manufacturing processes, while at the same time developing new products aimed at strengthening our core businesses.
Other research focuses are enabling technologies such as biotechnology and nanotechnology, which offer enormous potential for developing new products and businesses.
For innovation projects in particular, we build on our network of collaborations with leading universities, public-sector research institutes and partner companies. These collaborations allow the pooling of expertise in order to rapidly translate new ideas into successful products.
The Bayer AG innovation initiative “
Triple-i: Inspiration, Ideas, Innovation” was successfully launched in 2006. The initiative encourages all Bayer employees worldwide to submit ideas for potential new products and thus help strengthen Bayer’s innovative power. More than 1,900 ideas were received in the first eight months, many of which were passed on for further evaluation.
Other research focuses are enabling technologies such as biotechnology and nanotechnology, which offer enormous potential for developing new products and businesses.
For innovation projects in particular, we build on our network of collaborations with leading universities, public-sector research institutes and partner companies. These collaborations allow the pooling of expertise in order to rapidly translate new ideas into successful products.
The Bayer AG innovation initiative “
Triple-i: Inspiration, Ideas, Innovation” was successfully launched in 2006. The initiative encourages all Bayer employees worldwide to submit ideas for potential new products and thus help strengthen Bayer’s innovative power. More than 1,900 ideas were received in the first eight months, many of which were passed on for further evaluation. In 2006, €1,426 million, or roughly 62.1 percent of the Bayer Group’s research and development budget, was spent by HealthCare. Here it must be kept in mind that the Schering AG business is included on a pro-rated basis. With this investment, the subgroup is laying the foundation in the Pharmaceuticals and Consumer Health segments for the introduction of further innovative products in expanding markets.
The Research & Development function of our Pharmaceuticals segment has been restructured as part of our integration of Schering AG. It now encompasses the functions Global Drug Discovery and Global Development. We intend the changes in Research & Development to leverage the combined assets of Schering and Bayer to maximize both the output and effectiveness of our drug discovery and development programs.
Research programs and activities will be consolidated into three major research and development sites: Berlin and Wuppertal, Germany, and Berkeley, California. The Berlin research group will take leadership for diagnostic imaging, oncology and women’s health. Wuppertal will take leadership for the company’s hematology and cardiology research. Both locations have significant capabilities and activities in target discovery, lead generation and optimization, drug metabolism and pharmacokinetics, toxicology and clinical pharmacology. Berkeley will remain an important global research and development center for protein-based biologics drug discovery and will continue to be home of theKogenate® biological manufacturing facility. Bayer HealthCare’s U.S. research site in West Haven, Connecticut, and that of Berlex Inc. (U.S. subsidiary of Bayer Schering Pharma AG, Germany*) in Richmond, California, will be closed.
The Research & Development function of our Pharmaceuticals segment has been restructured as part of our integration of Schering AG. It now encompasses the functions Global Drug Discovery and Global Development. We intend the changes in Research & Development to leverage the combined assets of Schering and Bayer to maximize both the output and effectiveness of our drug discovery and development programs.
Research programs and activities will be consolidated into three major research and development sites: Berlin and Wuppertal, Germany, and Berkeley, California. The Berlin research group will take leadership for diagnostic imaging, oncology and women’s health. Wuppertal will take leadership for the company’s hematology and cardiology research. Both locations have significant capabilities and activities in target discovery, lead generation and optimization, drug metabolism and pharmacokinetics, toxicology and clinical pharmacology. Berkeley will remain an important global research and development center for protein-based biologics drug discovery and will continue to be home of the
Kogenate® biological manufacturing facility. Bayer HealthCare’s U.S. research site in West Haven, Connecticut, and that of Berlex Inc. (U.S. subsidiary of Bayer Schering Pharma AG, Germany*) in Richmond, California, will be closed. Our R&D activities are focused on the identification and development of new active substances for diseases with a high unmet medical need. In 2006 we conducted clinical studies with several candidates from our research and development pipeline.
Our research and development pipeline is currently being evaluated in connection with the integration of Schering AG and will be announced at a later date.
Following its registration by the U.S. Food and Drug Administration in December 2005, our new cancer drugNexavar® (sorafenib) was approved in July 2006 by the European Medicines Evaluation Agency (EMEA) for the treatment of patients with advanced renal cell carcinoma (RCC). Over the course of 2006, the product was registered in nearly 50 other countries for the treatment of advanced RCC. Nexavar® is based on a novel active ingredient developed jointly with Onyx Pharmaceuticals Inc. that inhibits tumor growth by simultaneously blocking several serine/threonine and receptor tyrosine kinases in tumor cells. The drug also reduces the generation of blood vessels that supply the tumor.
Our research and development pipeline is currently being evaluated in connection with the integration of Schering AG and will be announced at a later date.
Following its registration by the U.S. Food and Drug Administration in December 2005, our new cancer drug
Nexavar® (sorafenib) was approved in July 2006 by the European Medicines Evaluation Agency (EMEA) for the treatment of patients with advanced renal cell carcinoma (RCC). Over the course of 2006, the product was registered in nearly 50 other countries for the treatment of advanced RCC. Nexavar® is based on a novel active ingredient developed jointly with Onyx Pharmaceuticals Inc. that inhibits tumor growth by simultaneously blocking several serine/threonine and receptor tyrosine kinases in tumor cells. The drug also reduces the generation of blood vessels that supply the tumor. In addition to the launch of Nexavar® for advanced RCC, we are actively pursuing our Phase III clinical trial programs for the treatment of hepatocellular carcinoma (HCC), malignant melanoma and non-small-cell lung cancer (NSCLC). In the course of 2006, the FDA and the European EMEA both granted “orphan drug” designation to Nexavar® for the treatment of HCC. Furthermore, Nexavar® received “fast track” status from the FDA for the treatment of HCC and malignant melanoma. In December 2006, results were announced from the Phase III malignant melanoma study evaluating the combination of Nexavar® or placebo tablets with the chemotherapeutic agents carboplatin and paclitaxel in patients with advanced melanoma. This trial did not meet its primary endpoint of improving progression-free survival (PFS). The result of treatment was similar in the two treatment arms. In February 2007 an independent data monitoring committee (DMC) reviewed the safety and efficacy data of the Phase III clinical trial on the treatment of HCC with the conclusion that the trial met its primary endpoint. The DMC recommended stopping the trial early and Bayer and Onyx will follow that recommendation. The companies will continue discussions with health authorities worldwide regarding the next steps in filing for approval for the treatment of HCC, and intend to make those filings as rapidly as possible. Other tumor types are under investigation in earlier stages of clinical development.
In 2006 we launched Phase II clinical trials withZK-EPO, a further development candidate from the indication oncology.
ZK-EPO is a novel epothilone that blocks tumor cell division through a special mechanism of action. This substance is specifically designed to overcome limitations associated with other microtubule stabilizing agents. ZK-EPO is currently being tested for its effectiveness against various solid tumors, including several major cancers such as non-small-cell lung cancer (NSCLC), ovarian cancer, prostate cancer and breast cancer.
In 2006 we launched Phase II clinical trials with
ZK-EPO, a further development candidate from the indication oncology. ZK-EPO is a novel epothilone that blocks tumor cell division through a special mechanism of action. This substance is specifically designed to overcome limitations associated with other microtubule stabilizing agents. ZK-EPO is currently being tested for its effectiveness against various solid tumors, including several major cancers such as non-small-cell lung cancer (NSCLC), ovarian cancer, prostate cancer and breast cancer.
Rivaroxaban (BAY 59-7939) is a novel oral direct Factor Xa inhibitor being developed to address currently unmet needs in the anticoagulation market for prevention and treatment of thrombotic events. In October 2005, Bayer HealthCare and the Johnson & Johnson subsidiary Ortho-McNeil entered into an alliance under which Ortho-McNeil is contributing to the development of rivaroxaban, and initiated phase III clinical trials in December 2005 for the prevention of venous thromboembolism (VTE) after major orthopedic surgery. In June 2006 we announced Phase III trials in the two chronic indications stroke prevention in atrial fibrillation and treatment of venous thromboembolism VTE in a once-daily dose regimen. Also in 2006, we began Phase II clinical trials in the indication acute coronary syndrome/myocardial infarction.
One example of research and development activities in our Women’s Health business unit is the developmental productYAZ® from the drospirenone product line. A flexible dosing regimen will make YAZ® unique and different from other long-cycle oral contraceptives. The project is in Phase III clinical trials. Clinical studies for YAZ® in the indication acne treatment have demonstrated its effectiveness in this indication. This effect is brought about by the ingredient progestin drospirenone, which has anti-androgenic properties. FDA approval for YAZ® in the treatment of acne was granted in January 2007.
Our research and development efforts for biological products of the Hematology/Cardiology business unit are centered around strengthening and expanding our recombinant Factor VIII product Kogenate®. Key research and product development projects involving this product are Kogenate® – Next Generation and gene therapy for hemophilia B. In addition to the current optimization of new protein variants of our recombinant blood coagulation Factor VIII, we are evaluating technologies that could also play a role for the next generation of Kogenate®. These technologies include, among others, developments based on an exclusive global license agreement with Dutch-based Zilip-Pharma that permits us to develop and market a new Kogenate® FS presentation based on patented pegylated liposome technology.
BAY 59-7939) is a novel oral direct Factor Xa inhibitor being developed to address currently unmet needs in the anticoagulation market for prevention and treatment of thrombotic events. In October 2005, Bayer HealthCare and the Johnson & Johnson subsidiary Ortho-McNeil entered into an alliance under which Ortho-McNeil is contributing to the development of rivaroxaban, and initiated phase III clinical trials in December 2005 for the prevention of venous thromboembolism (VTE) after major orthopedic surgery. In June 2006 we announced Phase III trials in the two chronic indications stroke prevention in atrial fibrillation and treatment of venous thromboembolism VTE in a once-daily dose regimen. Also in 2006, we began Phase II clinical trials in the indication acute coronary syndrome/myocardial infarction. One example of research and development activities in our Women’s Health business unit is the developmental product
YAZ® from the drospirenone product line. A flexible dosing regimen will make YAZ® unique and different from other long-cycle oral contraceptives. The project is in Phase III clinical trials. Clinical studies for YAZ® in the indication acne treatment have demonstrated its effectiveness in this indication. This effect is brought about by the ingredient progestin drospirenone, which has anti-androgenic properties. FDA approval for YAZ® in the treatment of acne was granted in January 2007. Our research and development efforts for biological products of the Hematology/Cardiology business unit are centered around strengthening and expanding our recombinant Factor VIII product Kogenate®. Key research and product development projects involving this product are Kogenate® – Next Generation and gene therapy for hemophilia B. In addition to the current optimization of new protein variants of our recombinant blood coagulation Factor VIII, we are evaluating technologies that could also play a role for the next generation of Kogenate®. These technologies include, among others, developments based on an exclusive global license agreement with Dutch-based Zilip-Pharma that permits us to develop and market a new Kogenate® FS presentation based on patented pegylated liposome technology.
To supplement our internal research and development efforts, we collaborate with several companies in different stages of the typical pharmaceutical research cycle.
We supplement our portfolio of products emerging from our own research and development with in-licensed products, both on a global and a national level. Recent examples are the purchase of the European business for Boehringer Ingelheim's blood pressure treatment telmisartan (Pritor® and PritorPlus®) from GlaxoSmithKline in January 2006. Also in January 2006, we entered into an agreement with Nuvelo, Inc. for the global development and commercialization of alfimeprase, a novel clot dissolver, which is currently in Phase III development for the indications acute peripheral arterial occlusion (APAO) and catheter occlusion (CO) and was granted “fast track” status by the FDA in January 2006. Nuvelo and Bayer HealthCare announced in December 2006 that the two Phase III trials of alfimeprase in patients with APAO (NAPA-2 trial) and in CO (SONOMA-2 trial) did not meet their primary endpoints. The companies are temporarily suspending enrollment in the ongoing Phase III trials, NAPA-3 and SONOMA-3, until further analyses and discussions with outside experts and regulatory agencies are completed.
We supplement our portfolio of products emerging from our own research and development with in-licensed products, both on a global and a national level. Recent examples are the purchase of the European business for Boehringer Ingelheim's blood pressure treatment telmisartan (Pritor® and PritorPlus®) from GlaxoSmithKline in January 2006. Also in January 2006, we entered into an agreement with Nuvelo, Inc. for the global development and commercialization of alfimeprase, a novel clot dissolver, which is currently in Phase III development for the indications acute peripheral arterial occlusion (APAO) and catheter occlusion (CO) and was granted “fast track” status by the FDA in January 2006. Nuvelo and Bayer HealthCare announced in December 2006 that the two Phase III trials of alfimeprase in patients with APAO (NAPA-2 trial) and in CO (SONOMA-2 trial) did not meet their primary endpoints. The companies are temporarily suspending enrollment in the ongoing Phase III trials, NAPA-3 and SONOMA-3, until further analyses and discussions with outside experts and regulatory agencies are completed.
In October 2006 we entered into a collaboration agreement with Regeneron Pharmaceuticals, Inc. for the global development and commercialization of the VEGF Trap for the treatment of eye disease by local administration into the eye. The VEGF Trap, currently in Phase I and Phase II clinical trials, is a protein that binds to or “traps” the vascular endothelial growth factor (VEGF) and blocks its activity. Bayer has the contractual right to market the drug outside the United States if approved by the competent authorities.
We apply life cycle management measures to our marketed products to expand the scope of possible treatment opportunities by identifying new indications and improved formulations.Adalat® is a prime example of successful life cycle management: twenty-one years after the expiration of patent protection for the active ingredient nifedipine, its key component, the drug generated €657 million in sales in 2006.
Research and development activities of the Consumer Care Division focus on the identification, development and market introduction of non-prescription (over-the-counter =OTC) products. These efforts are centered around support for existing brands and the implementation of product-related, clinical and regulatory development strategies that offer the opportunity to successfully exploit new technologies, the expansion of indications for existing products and the reclassification of current prescription medicines as OTC products.
VEGF Trap for the treatment of eye disease by local administration into the eye. The VEGF Trap, currently in Phase I and Phase II clinical trials, is a protein that binds to or “traps” the vascular endothelial growth factor (VEGF) and blocks its activity. Bayer has the contractual right to market the drug outside the United States if approved by the competent authorities. We apply life cycle management measures to our marketed products to expand the scope of possible treatment opportunities by identifying new indications and improved formulations.
Adalat® is a prime example of successful life cycle management: twenty-one years after the expiration of patent protection for the active ingredient nifedipine, its key component, the drug generated €657 million in sales in 2006. Research and development activities of the Consumer Care Division focus on the identification, development and market introduction of non-prescription (over-the-counter =
OTC) products. These efforts are centered around support for existing brands and the implementation of product-related, clinical and regulatory development strategies that offer the opportunity to successfully exploit new technologies, the expansion of indications for existing products and the reclassification of current prescription medicines as OTC products. Our Diabetes Care Division focuses its research and development activities primarily on strengthening its core product lines and on expanding into high growth/high margin segments of the market. We achieve this through internal development and collaborations with suppliers of mass market, user-friendly whole blood glucose monitoring systems. In addition, we are actively researching a minimally invasive system that requires only a small blood sample and has a short testing time. Beyond these research and development projects we are investing in technologies that will allow glucose monitoring without painful invasive sampling of body fluids. One example of our expansion into new segments of the diabetes market is the acquisition in July 2006 of U.S.-based Metrika, headquartered in Sunnyvale, California. Metrika manufactures and markets a new type of handheld diabetes monitoring system capable of measuring the long-term diabetes parameter HbA1c, also known as glycated hemoglobin.
The Animal Health Division focuses its research and development activities on antimicrobials, parasiticides and active ingredients useful for the treatment of non-infectious diseases such as renal failure, pain management, oncology and congestive heart failure.
The Animal Health Division focuses its research and development activities on antimicrobials, parasiticides and active ingredients useful for the treatment of non-infectious diseases such as renal failure, pain management, oncology and congestive heart failure.
In 2006, €614 million – or about 26.7 percent of the Bayer Group’s research and development budget – was spent at CropScience.
CropScience has at its disposal a global network of research and development facilities. Crop Protection operates major research and development facilities in Monheim and Frankfurt, Germany; Lyon and Sophia Antipolis, France; Stilwell, Kansas and Raleigh, North Carolina, United States; and Yuki City, Japan.
While research is concentrated at specialized sites, development activities range from central facilities to field testing stations across the globe, enabling product testing in the relevant geographical areas.
CropScience has at its disposal a global network of research and development facilities. Crop Protection operates major research and development facilities in Monheim and Frankfurt, Germany; Lyon and Sophia Antipolis, France; Stilwell, Kansas and Raleigh, North Carolina, United States; and Yuki City, Japan.
While research is concentrated at specialized sites, development activities range from central facilities to field testing stations across the globe, enabling product testing in the relevant geographical areas.
Crop Protection Research and Development is responsible for the identification and development of innovative, safe and economically sustainable solutions in crop protection. Research covers activities to identify new active ingredients that can be developed as insecticides, fungicides or herbicides and/or other areas in modern crop protection. In addition to classical chemistry, biology and biochemistry, modern technologies such as combinatorial chemistry, ultra-high-throughput-screening, genomics and bioinformatics play an important role in the identification of new lead structures. Collaborations with third parties supplement our internal research activities.
Once a compound is identified for development, its biological, environmental and toxicological profile, as well as its economic potential, is assessed. Suitable candidates are launched in the market after having obtained the required regulatory approvals.
We actively support our products through continuous life cycle management. This includes the development of new formulations for existing active ingredients and products, e.g., expanding their applicability to additional crops or improving handling and facilitating application of the product.
The following new active ingredients were launched in 2006 or are expected to be launched by Crop Protection in 2007, subject to regulatory approval.
Once a compound is identified for development, its biological, environmental and toxicological profile, as well as its economic potential, is assessed. Suitable candidates are launched in the market after having obtained the required regulatory approvals.
We actively support our products through continuous life cycle management. This includes the development of new formulations for existing active ingredients and products, e.g., expanding their applicability to additional crops or improving handling and facilitating application of the product.
The following new active ingredients were launched in 2006 or are expected to be launched by Crop Protection in 2007, subject to regulatory approval.
| New active ingredient | Indication | Status |
| Fluopicolide | Fungicide | Market introduction 2006 |
| Flubendiamide | Insecticide | Market introduction expected in 2007 |
| Tembotrione | Herbicide | Market introduction expected in 2007 |
Fluopicolide (major brand: Infinito®) belongs to a new chemical class named acylpicolides. Products containing this novel chemical compound have been developed for use to control oomycete diseases in potatoes, vegetables and ornamentals. The new mode of action is intended to enable farmers to control oomycete diseases that are resistant to standard fungicides.
Flubendiamide (major brand:Belt®) represents a novel chemical family of substituted phthalic acid diamides with potent insecticidal activity. Belt® is a new insecticide for foliar application in annual and perennial crops, offering protection primarily against all major Lepidoptera species. Belt® is being co-developed by Nikon Nohyaku Company and Bayer CropScience for worldwide use on vegetables, fruits, cotton, corn, beans, tea and a number of other crops.
Tembotrione (major brand:Laudis®) from the triketone chemical family is a new herbicide for foliar application in corn plants. Tembotrione is a leaf-active substance that eliminates the protection of chlorophyll against UV light in weeds. Tembotrione is applied together with a safener component which enables the corn plants to metabolize the active substance and maintain the carotinoid layer protecting the corn plant against UV light, thereby offering a broad-spectrum weed control.
Infinito®) belongs to a new chemical class named acylpicolides. Products containing this novel chemical compound have been developed for use to control oomycete diseases in potatoes, vegetables and ornamentals. The new mode of action is intended to enable farmers to control oomycete diseases that are resistant to standard fungicides. Flubendiamide (major brand:
Belt®) represents a novel chemical family of substituted phthalic acid diamides with potent insecticidal activity. Belt® is a new insecticide for foliar application in annual and perennial crops, offering protection primarily against all major Lepidoptera species. Belt® is being co-developed by Nikon Nohyaku Company and Bayer CropScience for worldwide use on vegetables, fruits, cotton, corn, beans, tea and a number of other crops. Tembotrione (major brand:
Laudis®) from the triketone chemical family is a new herbicide for foliar application in corn plants. Tembotrione is a leaf-active substance that eliminates the protection of chlorophyll against UV light in weeds. Tembotrione is applied together with a safener component which enables the corn plants to metabolize the active substance and maintain the carotinoid layer protecting the corn plant against UV light, thereby offering a broad-spectrum weed control. The molecules discovered by Crop Protection research are also tested and evaluated in Environmental Science for potential development. Molecules from other companies may be tested and purchased if suitable. Development projects include passive treatments (gels, baits) and formulations to control insects, as well as new herbicide products and new mixtures of fungicides for the turf and ornamental market segments.
In 2006, the key launches of Environmental Science were the fungicide TartanTM (trifloxystrobin triadimefon-based) and the insecticide ForbidTM (spiromesifen-based) in the green industry and the sprayableQuickbayt® (imidacloprid-based) for fly control in professional pest control applications. In 2007 we expect to launch, among others, the insecticide Exemptor® (thiacloprid-based) in the green industry in Europe, as well as a new type of termite control granules (imidacloprid-based) and a new 2,4-D, dicamba-based herbicide for the pest and weed consumer market in the United States.
Research activities in the BioScience Business Group are based on plant technology and modern breeding methods. The primary BioScience research facilities are located in Lyon, France; Haelen, Netherlands; Ghent, Belgium; and Potsdam, Germany. Our main development sites are in the United States, Canada, Brazil, India and Australia.
In 2006, the key launches of Environmental Science were the fungicide TartanTM (trifloxystrobin triadimefon-based) and the insecticide ForbidTM (spiromesifen-based) in the green industry and the sprayable
Quickbayt® (imidacloprid-based) for fly control in professional pest control applications. In 2007 we expect to launch, among others, the insecticide Exemptor® (thiacloprid-based) in the green industry in Europe, as well as a new type of termite control granules (imidacloprid-based) and a new 2,4-D, dicamba-based herbicide for the pest and weed consumer market in the United States. Research activities in the BioScience Business Group are based on plant technology and modern breeding methods. The primary BioScience research facilities are located in Lyon, France; Haelen, Netherlands; Ghent, Belgium; and Potsdam, Germany. Our main development sites are in the United States, Canada, Brazil, India and Australia.
Research and development in this field is mainly geared toward improving the agronomic and qualitative properties of crops. The technologies used include all relevant tools – from identifying the gene of interest to developing it – necessary to improve key crops (cotton, canola and rice) for growers and industrial partners. Various projects at the research and development stage are pursuing the goal of improving the agronomic traits of crops with respect to herbicide tolerance, disease and insect resistance, harvest yields and quality. Our researchers are also searching for ways to develop plants that are highly resistant to stress factors such as extreme temperatures. At the same time, we conduct detailed analyses of crops with a view to producing special raw materials for industrial and consumer applications.
Our business growth in BioScience is supported by the continuous introduction of new products. In 2006 we introduced eight new cotton grades and four types of rice. We expect to launch several new cotton grades and one new type of canola in 2007.
Our business growth in BioScience is supported by the continuous introduction of new products. In 2006 we introduced eight new cotton grades and four types of rice. We expect to launch several new cotton grades and one new type of canola in 2007.
In 2006 MaterialScience spent €227 million, not including joint development activities with customers, to further expand its position as a technology leader and global supplier of customized, high-quality materials and systems solutions. This corresponds to 9.9 percent of the Group’s research and development expenses. In the five MaterialScience business units – Polyurethanes; Polycarbonates; Thermoplastic Polyurethanes; Coatings, Adhesives, Sealants and Inorganic Basic Chemicals – state-of-the-art technologies and production processes are used to implement new products and applications in close cooperation with our customers and external partners.
For example, our Polycarbonates business unit strives to develop new formulations and applications for its products and constantly improve its manufacturing processes. We are currently working further on the optimization of our new polycarbonate melt manufacturing process.
In product development, we focus our activities on developing new blends, refining material for optical data storage, developing modified base materials for polycarbonate sheets and modifying the surface of polycarbonates using various coating technologies. Examples include the further development of ourBayblend® FR series and Makrolon® with improved flame-resistant properties for the electronics and automotive industries. In the area of polycarbonate films, we are developing value added films (comprising new resins as well as surface-modified films) to enter new market segments such as soft touch coated Makrofol® films for interior parts used in the automotive industry and mobile phone housings.
For example, our Polycarbonates business unit strives to develop new formulations and applications for its products and constantly improve its manufacturing processes. We are currently working further on the optimization of our new polycarbonate melt manufacturing process.
In product development, we focus our activities on developing new blends, refining material for optical data storage, developing modified base materials for polycarbonate sheets and modifying the surface of polycarbonates using various coating technologies. Examples include the further development of our
Bayblend® FR series and Makrolon® with improved flame-resistant properties for the electronics and automotive industries. In the area of polycarbonate films, we are developing value added films (comprising new resins as well as surface-modified films) to enter new market segments such as soft touch coated Makrofol® films for interior parts used in the automotive industry and mobile phone housings. The main areas of innovation in the Polyurethanes business unit are currently the development of new or improved polyether polyol types and blends as well as the improvement of manufacturing processes. Polyurethanes concentrates its research and development efforts with respect to aromatic isocyanates on improving existing products and technologies for their manufacture. Our TDI facility in Caojing, China, which is planned to come on stream in 2009, will use such improved manufacturing processes.
In product development, we focus our activities on extending the applications for new composite materials. We also work to improve flame resistance and thermal insulation properties. We develop other materials for durability aspects using various technologies. Examples here include the development ofMultitec® for use in bathtubs as well as hoods and fenders for agricultural vehicles.
The Coatings, Adhesives, Sealants business unit focuses its research and development activities on developing polyurethane raw materials for the formulation of high performance coatings, adhesives and sealants, such as aliphatic and aromatic polyisocyanates and resin components. An important area of research is raw materials for waterborne and thus more environmentally friendly coatings systems. We are also working together with the U.S. company InPhase Technologies on the development of new photoactive polymers for holographic data-storage applications. InPhase's first generation product by the name ofTapestry® will be a memory storage medium holding 300 GB of data. In collaboration with the British coatings manufacturer E. Wood, we are developing a polyurea system based on a special aliphatic polyisocyanate. This new formulation is used for the rehabilitation of drinking water pipes.
TDI facility in Caojing, China, which is planned to come on stream in 2009, will use such improved manufacturing processes. In product development, we focus our activities on extending the applications for new composite materials. We also work to improve flame resistance and thermal insulation properties. We develop other materials for durability aspects using various technologies. Examples here include the development of
Multitec® for use in bathtubs as well as hoods and fenders for agricultural vehicles. The Coatings, Adhesives, Sealants business unit focuses its research and development activities on developing polyurethane raw materials for the formulation of high performance coatings, adhesives and sealants, such as aliphatic and aromatic polyisocyanates and resin components. An important area of research is raw materials for waterborne and thus more environmentally friendly coatings systems. We are also working together with the U.S. company InPhase Technologies on the development of new photoactive polymers for holographic data-storage applications. InPhase's first generation product by the name of
Tapestry® will be a memory storage medium holding 300 GB of data. In collaboration with the British coatings manufacturer E. Wood, we are developing a polyurea system based on a special aliphatic polyisocyanate. This new formulation is used for the rehabilitation of drinking water pipes. The bulk of research and development activities conducted by the Thermoplastic Polyurethanes business unit consists of developing high performance thermoplastic polyurethane resins and films, such as highly UV-stable and transparent grades for foils in solar modules.
The processes and plants of our Inorganic Basic Chemicals business unit, which supply MaterialScience with chlorine and inorganic intermediates, are continuously enhanced and optimized while keeping in mind environmental compatibility. The main area of innovation in chlorine production is currently the development of the oxygen depolarized cathode (ODC) to significantly reduce power consumption. We intend to use this technology to supply the isocyanate production in Caojing, China, with chlorine beginning in 2008.
To exploit profitable business opportunities for the future, the New Business section of MaterialScience constantly tracks and evaluates new technological and market trends. The most promising ideas are channeled into research and development projects. These projects are then either implemented in cooperation with the business units or developed within independent companies as part of the so-called greenhouse concept. In 2006, for example, the start-up enterprise LYTTRON was established for the production of three-dimensional molded electroluminescent films. Our internal activities are supplemented by collaborations with universities, institutes and start-up companies around the world.
The processes and plants of our Inorganic Basic Chemicals business unit, which supply MaterialScience with chlorine and inorganic intermediates, are continuously enhanced and optimized while keeping in mind environmental compatibility. The main area of innovation in chlorine production is currently the development of the oxygen depolarized cathode (ODC) to significantly reduce power consumption. We intend to use this technology to supply the isocyanate production in Caojing, China, with chlorine beginning in 2008.
To exploit profitable business opportunities for the future, the New Business section of MaterialScience constantly tracks and evaluates new technological and market trends. The most promising ideas are channeled into research and development projects. These projects are then either implemented in cooperation with the business units or developed within independent companies as part of the so-called greenhouse concept. In 2006, for example, the start-up enterprise LYTTRON was established for the production of three-dimensional molded electroluminescent films. Our internal activities are supplemented by collaborations with universities, institutes and start-up companies around the world.
For engineering and technological issues, particularly in the area of process technology, all subgroups work closely together with Bayer Technology Services. This service company develops innovative technology platforms for the Bayer Group, helping the subgroups to sustain their performance. These enabling technologies shorten development times and support the manufacture of new products, system solutions and production processes in the subgroups.
A strategic core element in this connection is international insourcing, which involves the acquisition of know-how. This ranges from country-specific expertise in the implementation of capital expenditure projects through the global exploitation of innovations and public research funding to the recruitment of top international experts and the establishment of collaborations with other companies and research institutes.
A strategic core element in this connection is international insourcing, which involves the acquisition of know-how. This ranges from country-specific expertise in the implementation of capital expenditure projects through the global exploitation of innovations and public research funding to the recruitment of top international experts and the establishment of collaborations with other companies and research institutes.
Innovation topics outside of the subgroups’ core activities are investigated, evaluated and developed into feasible new businesses for the Bayer Group by Bayer Innovation GmbH (BIG). BIG’s goal is to incorporate Bayer’s core competencies in the fields of health care, nutrition and materials into projects that complement the company’s business portfolio, and to facilitate access to new growth markets.
One example of this is the manufacture of plant-made pharmaceuticals (PMP). BIG is charged with coordinating the Bayer Group’s PMP activities. Through the acquisition in January 2006 of biotech company Icon Genetics AG, BIG possesses a PMP technology platform that enables us to offer market-oriented solutions for the biopharmaceutical business through magniCON® technology. The full potential of this technology platform is being evaluated in close cooperation with Bayer HealthCare, Bayer CropScience, Bayer MaterialScience, Bayer Technology Services and external partners.
One example of this is the manufacture of plant-made pharmaceuticals (PMP). BIG is charged with coordinating the Bayer Group’s PMP activities. Through the acquisition in January 2006 of biotech company Icon Genetics AG, BIG possesses a PMP technology platform that enables us to offer market-oriented solutions for the biopharmaceutical business through magniCON® technology. The full potential of this technology platform is being evaluated in close cooperation with Bayer HealthCare, Bayer CropScience, Bayer MaterialScience, Bayer Technology Services and external partners.
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The names "Bayer Schering Pharma" or "Schering" as used in this publication always refer to Bayer Schering Pharma AG, Berlin, Germany, or its predecessor, Schering AG, Berlin, Germany, respectively.
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