Dr. Rath Health Foundation

Dr. Rath Health Foundation

Responsibility for a healthy world Dr. Rath Research Institute 100+ Studies Published In PubMed

The Baycol / Lipobay - Scandal

Bayer: Cannot Forecast Ligitation Outcome

FRANKFURG (Reuters / February 26, 2003) - Germany's Bayer AG said on Wednesday it was impossible to forecast the outcome of litigation over its recalled cholesterol drug Baycol, and it might consider provisions for liabilities analysts fear could total billions of euros.

The news sent its already battered stock down a further 12 percent, to the lowest level in more than decade.

" Proceedings are at an early stage," Chief Executive Werner Wenning told an investors' conference in Frankfurt.

" It's impossible to predict the outcome of any litigation, particularly in the United States," he said, adding: "We will address the question of provisions appropriately in the future."

Bayer has said in the recent past that insurance is enough to cover for any liabilities arising from Baycol.

Shares in the German drugs and chemicals group have collapsed this week on fears it could face damages claims of up to 10 billion euros ($10.76 billion) if negligence is proved, more than the company's market capitalization.

The stock has lost more than a fifth of its value since the start of the week, and at 1216 GMT shares were 9.3 percent lower at 11.17 euros.

Bayer's six percent bond due April 2012 was bid at 236.8 basis points over benchmark government bonds by 1225 GMT, more than 28 basis points wider on the day. The bond's price fell 1.9 points, to 98.68 percent of face value.

NERVOUS MARKETS

Analysts said the Bayer chief executive's comments underlined the uncertainty over Baycol.