Bayer HealthCare Enhances U.S. Research Strategy with New Innovation Center

New U.S. Innovation Center in San Francisco’s Mission Bay will focus on developing partnerships with academic research institutions and small life science firms

Berlin, Germany and San Francisco, CA, USA, May 17, 2010 – Bayer HealthCare’s pharmaceutical division will establish a U.S. Innovation Center in San Francisco, Calif. to bundle its US research activities and to expand its global research network with the goal of expanding its specialty pharmaceutical pipeline.

"Bayer made the right decision to establish its U.S. Innovation Center in San Francisco because California is home to the most innovative and forward-thinking companies in the world, particularly in the life sciences and biotechnology sectors," said California Governor Arnold Schwarzenegger. "This is Bayer's most recent expansion in California, and the new center is an exciting addition to an already thriving cluster of biotech firms and university students and scientists in the Bay Area. Together I know they will help keep California a leader in important medical breakthroughs and achievements."

The Innovation Center model introduces a newly formed “Science Hub” for innovation sourcing in the U.S. creating collaborations with academic research scientists and small biotech firms to realize product development and commercialization of new therapies through partnerships with Bayer. The U.S. Innovation Center also will house Bayer scientists who drive the company’s strong hematology research program focused on coagulation factors and the discovery of novel biologic drug candidates.

“Through our newest innovation center, U.S. academic research institutions and young biopharmaceutical firms will work closely with Bayer scientists and leverage our experience in bringing novel discoveries to market. Working together we have the potential to create significant benefits for patients,” said Professor Andreas Busch, Head of Global Drug Discovery for Bayer’s pharmaceutical division. “Mission Bay is a hotbed of innovation in the U.S. and key to our decision to co-locate our researchers in this life sciences community. We expect this new focus on U.S. research collaboration to enhance Bayer’s pipeline which features a successful combination of internal excellence with highly partnered approaches in research and development and commercialization.”

The U.S. Innovation Center’s dedicated team of scientists will tap into the wealth of breakthrough thinking from the educational institutions and start up biotech companies to build partnerships and collaborations ranging from the research bench to the clinic. Bayer research scientists working in targeted areas such as cardiology, oncology, women’s healthcare and diagnostic imaging, will rotate through the U.S. Science Hub to collaborate with the critical mass of innovative thinking that is clustered in the Bay Area and broader U.S. life sciences sector.

“Bayer’s decision to establish its U.S. Innovation Center at Mission Bay is an exciting and significant achievement,” said San Francisco Mayor Gavin Newsom. “I’m proud of the City’s work to bring Bayer’s innovative, entrepreneurial spirit to San Francisco. We expect the U.S. Innovation Center to further catalyze and anchor the significant activity and growth we’ve already seen at Mission Bay, cementing its place as the premier biotech cluster in the nation.”

The Mission Bay area’s growing life science cluster is anchored by labs in the University of California system as well as the recently opened Diller Cancer Center and the future site of the Children’s and Women’s hospitals. Mission Bay was recently designated as an inaugural California Innovation Hub, or “iHub”, by the State of California Business, Transportation and Housing Agency. The state’s iHub program is designed to spur economic recovery and growth by showcasing and supporting California’s most promising hubs of innovation.

“More than 30 life sciences firms have co-located with the UC system here in Mission Bay, creating a strong scientific community and developing a culture of scientific discussion and engagement through public-private partnerships,” said Regis Kelly, Director of QB3. QB3 is a multi-disciplinary, multi-campus institute that represents more than 200 faculty from UCSF, UC Berkeley, and UC Santa Cruz. QB3 operates several biotech startup incubators and serves as a central point to help academia and industry make connections.

“Placing our research staff in the heart of a thriving life sciences community allows them to identify and support highly innovative, cutting edge therapeutic and technology opportunities from academic and biopharmaceutical firms, while they are also working on their own R&D projects. The entrepreneurial spirit of the region will carry over into our own organization,” said Terry Hermiston, Vice President of Biologics Research and Site Head for the U.S. Innovation Center. “Our goal is not only to add depth to Bayer’s pipeline, but also to work with scientists here in California and in life science hubs across the US to place novel medicines in the hands of physicians to meet the needs of their patients. We want to thank the Governor’s office for their long-standing commitment to encouraging innovation – particularly from both public and private life science sectors throughout the state. I want to say a special thank you to the Governor and the State of California for the long-standing commitment to encouraging research innovation in both public and private life science sectors. And express our appreciation to the City of San Francisco, specifically Mayor Newsom's office for their collaboration as we took steps to place our U.S. Innovation Center here and for encouraging growth of the biotechnology sector.”

Bayer’s U.S. Innovation Center will be located at Alexandria Real Estate Equities, Inc. (ARE: NYSE) 455 Mission Bay Boulevard South. Bayer will occupy approximately 49,000 square feet of leased lab and administrative space. By locating the Innovation Center in Mission Bay, Bayer’s scientists will be in the heart of a growing biomedical research community and in state-of-the-art labs designed through collaboration between Alexandria Real Estate Equities, FLAD and Bayer scientists. With timely permitting by the City of San Francisco, the lab construction by BN Builders is underway. In the fourth quarter 2010 Bayer’s 65-person research team will relocate to Mission Bay from its current space in Richmond, California – ensuring that the full complement of R&D labs at this 53-acre Bayer site are available for purchase or lease.

About Bayer HealthCare
The Bayer Group is a global enterprise with core competencies in the fields of health care, nutrition and high-tech materials. Bayer HealthCare, a subsidiary of Bayer AG, is one of the world’s leading, innovative companies in the healthcare and medical products industry and is based in Leverkusen, Germany. The company combines the global activities of the Animal Health, Bayer Schering Pharma, Consumer Care and Medical Care divisions. Bayer HealthCare’s aim is to discover, manufacture and market products that will improve human and animal health worldwide. Find more information at


US media:

Cathy Keck Anderson, Phone: +1 206 254-7714

European media:
Kerstin Crusius, Phone: +49 160 939 985 79

KC (2010-0243E)

Forward-Looking Statements
This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer’s public reports which are available on the Bayer website at The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

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