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2.4 Products, Distribution and Markets
Marketing activities within the Bayer Group are decentralized due to the diversified business portfolio.
HealthCare
HealthCare supplies more than 20,000 articles to meet the needs of patients and consumers in the various markets. The high number is due to the size of the product range and the various delivery forms, dosages, pack sizes, and language versions of individual products and their packaging.
In the Pharmaceuticals segment we supply prescription products in the areas of General Medicine, Specialty Medicine, Women’s Healthcare and Diagnostic Imaging. In the field of General Medicine we supply products such as 
Adalat® to treat high blood pressure and coronary heart disease, and Avalox®/Avelox® to fight infectious diseases. Our offering in the area of Specialty Medicine includes the multiple sclerosis treatment Betaferon®/Betaseron®, the hemophilia A treatment Kogenate® and the cancer drug Nexavar®. Women’s Healthcare markets contraceptive products, such as YAZ®/Yasmin®/Yasminelle® and Mirena®, and hormone replacement therapies such as Angeliq®. Our contrast agents, which are used in diagnostic imaging, include Ultravist® and Magnevist®. In the pharmaceuticals market we are among the world’s top 15 companies in terms of sales.
Adalat® to treat high blood pressure and coronary heart disease, and Avalox®/Avelox® to fight infectious diseases. Our offering in the area of Specialty Medicine includes the multiple sclerosis treatment Betaferon®/Betaseron®, the hemophilia A treatment Kogenate® and the cancer drug Nexavar®. Women’s Healthcare markets contraceptive products, such as YAZ®/Yasmin®/Yasminelle® and Mirena®, and hormone replacement therapies such as Angeliq®. Our contrast agents, which are used in diagnostic imaging, include Ultravist® and Magnevist®. In the pharmaceuticals market we are among the world’s top 15 companies in terms of sales.Our pharmaceutical products are primarily distributed through wholesalers, pharmacies and hospitals. Co-promotion and co-marketing agreements serve to optimize our distribution network. For example, the agreement with Johnson & Johnson subsidiary Ortho-McNeil concerning the joint further development and marketing of the anticoagulant Xarelto® ensures optimum progress in this area, conferring regional marketing rights that enable both partners to share in the product’s expected success. Another example is the strategic alliance with Schering-Plough (now Merck & Co., Inc., United States) under which that company markets selected primary care products in the United States. We also co-market Zetia®, a product of Merck & Co., Inc., in Japan.
Xarelto® ensures optimum progress in this area, conferring regional marketing rights that enable both partners to share in the product’s expected success. Another example is the strategic alliance with Schering-Plough (now Merck & Co., Inc., United States) under which that company markets selected primary care products in the United States. We also co-market Zetia®, a product of Merck & Co., Inc., in Japan.The Consumer Health segment offers chiefly non-prescription (over-the-counter = OTC) medicines. The Consumer Care Division has brands in most OTC categories, such as Aspirin® and Aleve® (analgesics) or Canesten® (dermatologicals). The product range also includes nutritionals such as Supradyn® and One-A-Day®, antacids, skin care products such as Bepanthen®/Bepanthol®, and cough-and-cold products. Consumer Care is a leading player in the OTC market. The division also includes prescription dermatology products. While the division’s sales and distribution channels outside Europe are typically supermarket chains, drugstores and other large retailers, pharmacies are the usual distribution channel in Europe.
Aspirin® and Aleve® (analgesics) or Canesten® (dermatologicals). The product range also includes nutritionals such as Supradyn® and One-A-Day®, antacids, skin care products such as Bepanthen®/Bepanthol®, and cough-and-cold products. Consumer Care is a leading player in the OTC market. The division also includes prescription dermatology products. While the division’s sales and distribution channels outside Europe are typically supermarket chains, drugstores and other large retailers, pharmacies are the usual distribution channel in Europe. In the Medical Care Division we offer user-friendly blood glucose monitoring devices such as the single-strip Contour® system or the multi-strip Breeze® system. We generally market these products to consumers outside Europe through pharmacies, drugstores, mass merchants, hospitals and wholesalers. In Europe, they are sold mainly through pharmacies. We are among the top three companies in the market for blood glucose meters. Additionally we offer medical equipment such as contrast injection systems for diagnostic and therapeutic medical procedures in computed tomography, magnetic resonance imaging and molecular imaging, along with mechanical systems for the treatment of constricted or blocked blood vessels. These products are marketed to cardiologists, radiologists and vascular surgeons in hospitals and out-patient clinical sites through a global direct sales organization that is supplemented in certain regions by local distributors. We are the global market leader in contrast agent injection systems.
Breeze® system. We generally market these products to consumers outside Europe through pharmacies, drugstores, mass merchants, hospitals and wholesalers. In Europe, they are sold mainly through pharmacies. We are among the top three companies in the market for blood glucose meters. Additionally we offer medical equipment such as contrast injection systems for diagnostic and therapeutic medical procedures in computed tomography, magnetic resonance imaging and molecular imaging, along with mechanical systems for the treatment of constricted or blocked blood vessels. These products are marketed to cardiologists, radiologists and vascular surgeons in hospitals and out-patient clinical sites through a global direct sales organization that is supplemented in certain regions by local distributors. We are the global market leader in contrast agent injection systems. The Animal Health Division focuses on the health of companion animals and livestock, for which we offer pharmaceuticals and grooming products. The largest product line is Advantage® to treat flea infestation in dogs and cats, followed by Baytril® for the control of infectious diseases, the wormers Drontal® and Drontal Plus®, and Baycox® for the treatment of coccidiosis in pigs. We occupy leading positions in individual countries and product segments, and are the world’s fourth-largest animal health company in terms of sales. Depending on local regulatory frameworks, animal health products may be available to end users with a prescription issued by a veterinarian or over the counter from retail stores, drugstores and pharmacies.
Advantage® to treat flea infestation in dogs and cats, followed by Baytril® for the control of infectious diseases, the wormers Drontal® and Drontal Plus®, and Baycox® for the treatment of coccidiosis in pigs. We occupy leading positions in individual countries and product segments, and are the world’s fourth-largest animal health company in terms of sales. Depending on local regulatory frameworks, animal health products may be available to end users with a prescription issued by a veterinarian or over the counter from retail stores, drugstores and pharmacies. CropScience
The CropScience business is subject to the growing seasons for the relevant crops and the respective distribution cycles.
Our Crop Protection business is based on a broad, balanced portfolio of highly effective herbicides, fungicides, insecticides and seed treatment products. Thanks to our innovative capability and many years of experience with pest control products, we are the global market leader in the insecticides market. Fungicides prevent or cure diseases caused by fungal infestation that can significantly impair harvest yields and quality. CropScience is the world’s second-leading supplier in the fungicides market and occupies a strong number three position in the global market for weed control products (herbicides), including plant growth regulators. Our Seed Treatment business unit focuses on the use of crop protection active ingredients specially developed for the protection of seeds and seedlings. Its broad, balanced range of insecticides, fungicides and combination products makes CropScience the leading company in the seed treatment market in terms of sales. Our Crop Protection products are marketed either via wholesalers or directly through retailers by means of a two- or three-step distribution system, depending on local market conditions.
The products of our Environmental Science business unit are based on our crop protection active ingredients and are specially designed for non-agricultural uses. In terms of sales, Bayer is among the world’s leading suppliers of non-agricultural pest control products. The business unit is divided into Consumer Products, which markets plant care products and lawn, home and garden brands specifically to consumers, and Professional Products, which offers solutions for professionals in the green, pest control and vector control industries. The Environmental Science products are marketed through various distribution channels. Our home and garden products are sold to consumers via both wholesalers and specialist retailers. Products for professional users are sold either directly to customers or via wholesalers. In the vector control field, particularly, much of our business takes place in response to tendering by government agencies and non-governmental organizations.
In the BioScience business unit, our activities are focused on seed production in the four core crops of cotton, canola, rice and vegetables, where we offer high-quality seed based on our own research and breeding expertise. We have achieved strong market positions in these four crops and are globally represented. We market our canola seed primarily in North America, our cotton seed in North and Latin America, India and southern Europe, and our hybrid rice seed in Asia and, since 2009, in the United States. Our vegetable seed varieties are sold in more than 100 countries throughout the world. Our seed is distributed to farmers, breeders, specialist retailers and the processing industry. Traits developed using modern breeding methods and plant biotechnology are either incorporated into our own seed varieties or licensed to other seed companies for use in their products. In some cases, traits are also provided to other companies for research purposes.
MaterialScience
MaterialScience is among the world’s leading manufacturers and suppliers of polyurethanes and polycarbonates and of raw materials for coatings and adhesives. The subgroup holds leading competitive positions in these product groups in all regional markets. We also produce and market selected inorganic basic chemicals such as chlorine, sodium hydroxide solution, hydrogen, hydrochloric acid, nitric acid and carbon monoxide, which serve either as raw materials (such as chlorine) for our primary products or are generated as by-products (such as sodium hydroxide solution) and sold to external customers.
Our primary products are used mainly in the automotive, construction, electronics, data communications, furniture, timber, chemical, sports equipment, leisure goods, textile, medical technology and manufacturing industries. Our polyurethane raw materials, such as diphenylmethane diisocyanate (MDI) , toluene diisocyanate (TDI) and polyether, and the polyurethane systems based on them that are offered in the market are used, for example, in the production of mattresses, refrigerator insulations, automotive bumpers and shoe soles. Examples of applications for our polycarbonates, which we market under the Makrolon®, Bayblend®, Makroblend® and other trademarks, include housings for electrical appliances, CDs/DVDs, car headlamps, stadium roofs and water bottles for water dispensers. The Coatings, Adhesives, Specialties business unit manufactures raw materials for coatings and adhesives used in the automobile and commercial vehicle industries, and for adhesives used in footwear.
MDI)TDI) and polyether, and the polyurethane systems based on them that are offered in the market are used, for example, in the production of mattresses, refrigerator insulations, automotive bumpers and shoe soles. Examples of applications for our polycarbonates, which we market under the Makrolon®, Bayblend®, Makroblend® and other trademarks, include housings for electrical appliances, CDs/DVDs, car headlamps, stadium roofs and water bottles for water dispensers. The Coatings, Adhesives, Specialties business unit manufactures raw materials for coatings and adhesives used in the automobile and commercial vehicle industries, and for adhesives used in footwear. We market our products mostly through regional and local distribution channels, making increasing use of e-commerce platforms for order processing. We also work with trading houses and local distributors who are responsible for business with small customers. Major customers with global operations are serviced directly by our key account managers.
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