Pharma BD Deal Intelligence

Bayer AG / Cutter Laboratories

1974 · Acquisition/Merger · Complete

Bayer's 1974 acquisition of Cutter Laboratories gave it an immediate US manufacturing and biologicals foothold, anchoring decades of American pharmaceutical operations. The deal's financial terms were undisclosed, though Cutter's Berkeley plant later became infamous for a contaminated blood-product scandal.

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The coverage arc

Nov 25, 2002 Wikipedia Neutral

In 1978, Bayer purchased Miles Laboratories and its subsidiaries which included Cutter Laboratories, bringing product lines such as Alka-Seltzer and…

Feb 07, 2006 Wikipedia Neutral

The Bayer pharmaceutical company bought Cutter Laboratories in 1974, acquiring the Berkeley-based pharmaceutical and biological products manufacturer that had…

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Bayer acquired Cutter Laboratories in 1974, gaining the Berkeley-based pharmaceutical and biologicals manufacturer (founded 1897) as part of its entry into the US market.

Key facts

Disease & market context

Blood Products & Biologics

33K US cases/yr · $15.0B Global Hemophilia Treatment Market (2024) · $43B Global Blood Products Market (2024)

Disease Overview

Cutter Laboratories was founded in 1897 in Berkeley, California by Edward Ahern Cutter. The company pioneered veterinary vaccines, including the first tissue culture vaccine ever produced (hog cholera). During WWII, Cutter expanded into blood plasma and penicillin production. Bayer acquired Cutter in 1974. The company became infamous for the contaminated Factor VIII blood products crisis in the 1980s.

Industry Context

Bayer's acquisition of Cutter gave it a biologics and blood products platform in the US. However, the contaminated Factor VIII scandal (1980s) -- where HIV-tainted clotting factors were knowingly distributed to hemophilia patients internationally -- became one of pharma's worst safety crises. Thousands contracted HIV, resulting in massive litigation. The blood products industry subsequently implemented viral inactivation standards and recombinant alternatives.

Related deals — scored

DealYearValueOutcome
Bayer AG / Cutter Laboratories (this deal)197448
Bayer AG / Schering AG2006$21.5B79
Bayer AG / BlueRock Therapeutics2002$600M79
Bayer AG / Merck & Co., Inc.2014$14.2B71
Bayer AG / Schering AG (residual squeeze-out)2007$985M69
Bayer AG / Arvinas, Inc.2019$1.0B59
Bayer AG / Merck & Co. Inc.2014$14.2B56

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