Bayer as a well known German based multinational chemical and pharmaceutical company recently separated with Coverstro both economically and legally. And after the independence, Bayer will be developed into a pure and leading life science company according to the latest official news of the company.
Some articles attributed the reason of the division to sharing no common in products, as Coverstro is doing transaction on chemicals and plastics used for producing stuffs like mattresses. However Bayer focused on drug R&D and production. That should be one of the fundamental reasons of Bayer’s independence.
The aim of Bayer is quite clear after the separation with Coverstro. With its accumulated capital, market and reputation previously in the field of pharmaceutical, the goal can be achieved under a good management. The future business will be in three modules including pharmaceuticals, consumer health, and crop science, which are also the main divisions of life science. Then a strong competitor will join the market contest in life science.
Bayer has prepared for this shift for over a decade. Early from 2001, the company is conceiving the idea as they cost € 7.25 billion and € 17 billion for the seperatively acquisition of Aventis a crop science company in 2001 and Schering a healthcare company in 2006. With the full preparation, the fate of the restructured Bayer will go in a positive direction.
Sharpening customer target, providing products with innovation, and improving business process will be the specific measures taken by the company to expand its market according to the Chairman of Bayer Marjin Dekkers.
For a better initial running of the company, new boards consists of division heads taking full responsibility of the business running in their fields effective from 1st, January, 2016. And the good news for the employees is that there won’t be changes for their jobs as the company shifts its structure.
Alteration in developing direction of giant company will influence the whole industry to some degree, but with the join of Bayer like company, the field will be into a more competitive state, which in other perspectives may lead to better performance for the small companies to gain customer’s acceptance.