Marion Merrell Dow

Marion Merrell Dow and its predecessor Marion Laboratories was a U.S. 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which treats arrhythmias and high blood pressure, Carafate (an ulcer treatment), Gaviscon (an antacid), Seldane (a withdrawn antihistamine), Nicorette (anti-smoking gum) and Cepacol mouthwash.[1]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

Richardson-Merrell

The company traces its roots back to 1828 when William S. Merrell opened the Western Market Drug Store at Sixth Street and Western Row (now Central Avenue) in downtown

Marion Merrell Dow

In 1989, Dow Chemical acquired 67 percent interest of Marion Laboratories, which 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][9]

At the time Marion Laboratories was outperforming all other drug company stocks by 2½ times.[11] Marion had the highest sales and the highest profit per employee of any company traded on the New York Stock Exchange. 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.

Although controlled by Dow the new company continued to trade on Marion Laboratories' old New York Stock Exchange ticker symbol "MKC."

Marion Laboratories

Ewing Kauffman, a former pharmaceutical salesman in Kansas City, Missouri started the company 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 $5,000 in capital. Kauffman later said he used his middle name for the company to avoid the impression that it was a one-person operation.[1]

As the company expanded, Kauffman offered employees share options and profit sharing..

Rather than researching products, the company adopted a policy of buying existing products and reformulating them for market.

In 1964, it formally incorporated as Marion Laboratories, Inc.[12]

In the 1980s, it marketed Silvadene (a burn cream), Ditropan (treatment for bladder spasms), Nitro-Bid (chest pain treatment), ARD and Bac-T-Screen (helped identify bacteria), Culturette (used to identify Group A streptococci) and ToxiLab, a drug detection system used to detect drug abuse.[1] In 1989, Marion Laboratories had a gross revenue of $930 million; it was acquired by Dow Chemical and took the name Marion Merrell Dow. By 1994 it had nearly 10,000 employees.[12]

fate	Acquired by Hoechst AG to create Hoechst Marion Roussel
successor	Sanofi
foundation	1950 (Marion Laboratories) 1989 (Marion Merrell Dow)
defunct	1996
location	Kansas City, Missouri
industry	Pharmaceutical

History

Richardson-Merrell

Thalidomide

Thalidomide

Merrell Dow Pharmaceuticals

U.S. Supreme Court cases

U.S. Supreme Court cases