Marion Merrell Dow: Difference between revisions
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In 1995 [[Hoechst AG]] of Germany announced plans to buy Dow's increased 71 percent share for $25.75 a share or $7.1 Billion -- a profit of between $4 and $5 billion for Dow. Hoeschst also bought the other outstanding shares. The deal created the [[List of pharmaceutical companies|world's second largest drug manufacturer]] at the time (behind [[Glaxo Wellcome]] and ahead of [[Merck & Company]]).<ref>[http://findarticles.com/p/articles/mi_qa3653/is_199505/ai_n8732298 Hoechst agrees to acquire Marion Merrell Dow - Corporate Growth Weekly - May 15, 1995]</ref> |
In 1995 [[Hoechst AG]] of Germany announced plans to buy Dow's increased 71 percent share for $25.75 a share or $7.1 Billion -- a profit of between $4 and $5 billion for Dow. Hoeschst also bought the other outstanding shares. The deal created the [[List of pharmaceutical companies|world's second largest drug manufacturer]] at the time (behind [[Glaxo Wellcome]] and ahead of [[Merck & Company]]).<ref>[http://findarticles.com/p/articles/mi_qa3653/is_199505/ai_n8732298 Hoechst agrees to acquire Marion Merrell Dow - Corporate Growth Weekly - May 15, 1995]</ref> |
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Hoescht's new pharmaceutical company became Hoechst Marion Roussel and kept its North American headquarters in Kansas City. Hoescht in turn later became part of the pharmaceutical and lab [[assay]] testing company [[Aventis]] in 1999, and subsequently a part of the multinational pharmaceutical company [[Sanofi-Aventis]]. |
Hoescht's new pharmaceutical company became Hoechst Marion Roussel and kept its North American headquarters in Kansas City. Hoescht in turn later became part of the pharmaceutical and lab [[assay]] testing company [[Aventis]] in 1999, and subsequently a part of the multinational pharmaceutical company [[Sanofi-Aventis]]. Sanofi-Aventis's principal production plant in the United States is in Kansas City at 10236 Marion Park Drive. |
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==U.S. Supreme Court Cases== |
==U.S. Supreme Court Cases== |
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Revision as of 02:42, 25 August 2008
| Industry | Pharmaceutical |
|---|---|
| Founded | 1950 (Marion Laboratories) 1989 (Marion Merrell Dow) |
| Defunct | 1996 |
| Fate | Acquired by Hoechst AG |
| Successor | Hoechst Marion Roussel |
| Headquarters | Kansas City, Missouri |
Marion Merrell Dow and its predecessor Marion Laboratories was a pharmaceutical company based in Kansas City, Missouri from 1950 until 1996.
The company specialized in bringing to market drugs that had been discovered but unmarketed by other companies including Cardizem (which slowed calcium build up), Carafate (an ulcer treatment), Gaviscon (an antacid), Seldane (antihistamine), Nicorette (anti-smoking gum) and Cepacol mouthwash.[1]
The company operating out of its headquarters at 9300 Ward Parkway was a springboard for its founder Ewing Marion Kauffman to start the Kansas City Royals baseball team.
History
Marion Laboratories
Kauffman, a former pharmaceutical salesman in Decatur, Illinois started the company in in 1950 in the basement of his Kansas City home by selling calcium supplements made from crushed oyster shells which he made in his home and starting with $4,000 in capital. Kaufmann would say later he used his middle name for the company to avoid the impression that it was a one-person operation.[1]
The company quickly took off. As Kauffman expanded he offered his employees share options and profit sharing.
Rather researching products, the company adopted a policy of buy products discovered by other companies and reformulating them for market.
In 1964 it formally incorporated at Marion Laboratories, Inc.
In the 1980s it marketed Sivadone (a burn cream), Ditropan (treatment for bladder infections), Nito-Bid (chest pain treatment), Ard and Bac-T-Screen (helped identify bacteria), Culturette (used to to identify Group A streptococci) and ToxiLab, a drug detection system used to detect drug abuse.[1]
Marion Merrell Dow
In 1989 Cincinnati, Ohio-based Merrell Dow Pharmaceuticals, a subdivision of Dow Chemical acquired 67 percent interest and the company was renamed Marion Merrell Dow. Among the products Merrell Dow brought that would be shortly marketed were Seldane, Lorelco, Nicorette and Cepacol. The merger was considered a good fit because of Marion Laboratories strong sales force and Merrell Dow's strong research and development capabilities.[1]
At the time Marion Laboratories was outperforming all other drug company stocks by 2 1/2 times.[2] Marion had the highest sales and the highest profit per employee of any company traded on the New York Stock Exchange.[3] Dow's initial offer was $38 a share in cash, or $2.2 billion, for the 39 percent of Marion's 150 million shares with an option to raise the stake to 67 percent by 1992. The offer made 300 of Marion's employees millionaires. The deal created the fifth largest drug company in the United States in terms of sales.
Merrell Dow had been created with 1980 Dow merger with Richardson-Merrell.[4] The Merrell name came from William Stanley Merrell whose drugstore at Sixth Street and Central Avenue in Cincinnati which opened on June 10, 1828 evolved into the William S. Merrell Chemical Company.[5] The Richardson name came from pharmacist Lunsford Richardson. Descendants of the two men merged their companies in the 1930s.
Although controlled by Dow the new company continued to trade on Marion Laboratories' old New York Stock Exchange ticker symbol "MKC."
Hoechst Marion Roussel
In 1995 Hoechst AG of Germany announced plans to buy Dow's increased 71 percent share for $25.75 a share or $7.1 Billion -- a profit of between $4 and $5 billion for Dow. Hoeschst also bought the other outstanding shares. The deal created the world's second largest drug manufacturer at the time (behind Glaxo Wellcome and ahead of Merck & Company).[6]
Hoescht's new pharmaceutical company became Hoechst Marion Roussel and kept its North American headquarters in Kansas City. Hoescht in turn later became part of the pharmaceutical and lab assay testing company Aventis in 1999, and subsequently a part of the multinational pharmaceutical company Sanofi-Aventis. Sanofi-Aventis's principal production plant in the United States is in Kansas City at 10236 Marion Park Drive.
U.S. Supreme Court Cases
In the U.S., Merrell Dow Pharmaceuticals was a named party in at least two major United States Supreme Court cases:
- Merrell Dow Pharmaceuticals Inc. v. Thompson, 478 U.S. 804 (1986), involving original jurisdiction
- Daubert v. Merrell Dow Pharmaceuticals 509 U.S. 579 (1993), applied the rules governing expert testimony established by the Federal Rules of Evidence to the admission of scientific evidence at trials conducted in federal courts
References
- ^ a b c d http://www.fundinguniverse.com/company-histories/Marion-Merrell-Dow-Inc-Company-History.html Marion Merrell Dow, Inc., International Directory of Company Histories, Vol. 9. St. James Press, 1994] (reprinted on fundinguniverse.com)
- ^ http://pqasb.pqarchiver.com/sptimes/access/51699233.html?dids=51699233:51699233&FMT=ABS&FMTS=ABS:FT&date=Aug+22%2C+1986&author=Dick+Davis&pub=St.+Petersburg+Times&desc=Marion+Laboratories+predicted+to+outperform+all+drug+stocks&pqatl=google
- ^ http://www.visionomics.com/
- ^ http://www.dow.com/about/aboutdow/history/1980s.htm
- ^ This Day in Ohio History by by Rebecca Goodman and Barrett J. Brunsman - Emmis Books - 2004 ISBN 1578601916
- ^ Hoechst agrees to acquire Marion Merrell Dow - Corporate Growth Weekly - May 15, 1995
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