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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Bayer To Sell Spokane Plant Company Says Allergy Products Produced Here ‘Not A Good Fit’ In Its Long-Term Strategy

Luke Timmerman Staff writer

Bayer Corp. told its 320 employees in Spokane Wednesday afternoon that the allergy products division is now for sale.

The facility, located at 3525 N. Regal, manufactures more than 100 products for treating allergies, most of which are allergenic extracts used for allergy shots.

Employees were told there are no plans for layoffs or cutbacks and the sale could take months, said Dan McIntyre, vice president of public policy for Bayer Corp., whose American headquarters are based in West Haven, Conn.

Bayer’s long-term strategy involves drugs to treat a long list of diseases such as cancer, diabetes, osteoporosis, infectious diseases, nervous disorders and cardiovascular problems, McIntyre said.

“Allergy products are not a good fit in Bayer’s long-term strategy,” McIntyre said.

There have been no formal negotiations about a selling price so far. McIntyre said Bayer has not contacted any companies about selling the allergy division, but several buyers have shown interest. He would not name the potential buyers.

McIntyre said possible buyers must have a strategic interest in the allergy business.

He said employees Wednesday “were very receptive and interested in what’s going to happen.

“We’re asking employees to continue to work hard so that it (the plant) is attractive to a strategic buyer,” McIntyre said.

In December, the plant received a letter from the Food and Drug Administration criticizing quality assurance at the plant. The FDA cited 45 separate deficiencies covering maintenance, cleanliness, process-control, record-keeping and training.

That criticism, based on an FDA inspection conducted in August 1996, played no part in Bayer’s decision to sell, McIntyre said, adding “if it did, we’d have a problem finding a buyer.”

Bayer had invested $2 million in capital improvements to the plant in 1997 and planned further improvements this year, McIntyre said. He did not release profits or revenue figures for the Spokane facility.

The plant, operated for many years by the Hollister-Stier Co., was founded in Spokane in 1920. The current facility was built in 1968, and was purchased by Bayer in 1974.

Bayer, based in Laverkusen, Germany, is one of the world’s largest drug and chemical companies, with $32.4 billion in annual sales.

Bayer is the world leader in allergenic extracts with 40 percent of the market. Allergenic extracts are administered mainly in the form of shots, not as over-the-counter drugs or antihistamines.

, DataTimes