Sterling Drug

Sterling Drug was a global pharmaceutical company based in the United States, later known as Sterling-Winthrop, Inc., whose primary product lines included diagnostic imaging agents, hormonal products, cardiovascular products, analgesics, antihistamines and muscle relaxants.

It was started in 1901 (then called Neuralgyline Co.) in Wheeling, West Virginia, by Albert H. Diebold and William E. Weiss, a pharmacist. [cite web |url=http://cavemanchemistry.com/cavebook/chaspirin.html |title=Chapter 26. Bayer (Pharmaceuticals) |accessdate=2007-08-13 |work=Textbook of Chemistry, 1913 ] In 1918, at the end of World War I, the U.S. assets of the German company now called Bayer AG were sold to Sterling for US$5.3 million (directed under the Alien Property Custodian Act). At the time Sterling, like many other pharmaceutical manufactures, was in the dye business, and sold that division for $2.5 million in 1919 to the Grasselli Chemical Company (based in Linden, New Jersey), which employed many former Bayer personnel. [cite web|url=http://www.colorantshistory.org/GeneralAnilineLinden.html |title=General Aniline Linden, New Jersey |accessdate=2007-08-13] An October 1920 agreement between Sterling and the German Bayer (called "Farbenfabriken Bayer in Leverkusen" under the direction of Carl Duisberg of I.G. Farbenindustrie) allowed Sterling to sell aspirin under the Bayer name. In return, Bayer was allowed back into its old Latin-American markets. In 1922, 50% of Sterling's new holding company, Winthrop, was given to the German Bayer company, while the American Bayer was allowed to continue using the Bayer name. [cite web |url=http://www.h-net.org/~business/bhcweb/publications/BEHprint/v023n1/p0201-p0211.pdf |title=Foreigh Trade Strategies of I.G. Farben after World War I |accessdate=2007-08-13 |format=PDF] In 1923 Sterling purchased a 1/4 interest in The Centaur Company, manufacturers of Charles Henry Fletcher's, Fletcher's Castoria (New York Times, Feb 9, 1923, Page 24, Col 1).

In 1974, Sterling opened a manufacturing plant in McPherson, Kansas. The various companies which would eventually acquire Sterling chose to keep the factory open. In 1997, Abbott Laboratories agreed to buy the McPherson plant from Sanofi for $200 million and retain the rights to manufacture injectable drugs manufactured at the facility. In 2006 Abbott Laboratories chose to spin off its hospital products division and formed a new company, Hospira. Hospira added 174 jobs to the McPherson area in 2006.

In 1988, Sterling was acquired by Eastman Kodak for $5.1 billion. In 1993, Eastman Kodak/Sterling Winthrop made a partnership with French pharmaceutical company Elf Sanofi (now known as Sanofi Aventis). In 1994, Sanofi acquired the prescription drug operations of Sterling Winthrop from Eastman Kodak for US$1.675 billion, and then it sold the diagnostic-imaging division a week later to Hafslund Nycomed AS, a Norwegian company, for US$450 million. [cite web |url=http://www.findarticles.com/p/articles/mi_m3498/is_n6_v57/ai_16074982 |title=Kodak plans to sell two health care products divisions, focus on imaging - Eastman Kodak Co |accessdate=2007-08-13 |work=Health Industry Today] Kodak then completely owned the over-the-counter drug business, including Bayer Aspirin and the U.S. rights to the Bayer name and trademarks, and sold them to SmithKline Beecham for US$1 billion, who then sold it back to Bayer AG in 1994 for US$1 billion. [cite web |url=http://www.johnson.cornell.edu/faculty/profiles/Biloski/ |title=Faculty, COrnell University The Johnson School|accessdate=2007-08-13] [cite web |url=http://pubs.acs.org/cen/coverstory/83/8325/8325aspirin.html |title=Aspirin |accessdate=2007-08-13 |work=Chemical & Engineering News] Spinoffs from the sale of Sterling include Starwin Products, created in 1987 from Sterling’s original branch in Ghana.

Footnotes

Further reading

Ambruster, H. W. (1947). "Treason’s Peace: German Dyes and American Dupes", The Beechhurst Press, New York.