Bayer Pays 1.133 Bln Usd to Settle 2,995 Baycol CasesMay 10, 2005 | AFX
Bayer AG said that as of April 25 it has paid 1.133 bln usd to settle 2,995 cases worldwide related to its former cholesterol-lowering blockbuster drug Baycol (Lipobay), which was withdrawn from the market three years ago for safety reasons.
The figures show the chemicals and pharmaceutical hybrid has paid on average 381,224 usd to settle each case.
At the annual general meeting in late April, Bayer said there are now fewer than 6,000 Baycol cases pending, compared to 6,174 cases in March.
On March 15, Bayer said it had paid 1.126 bln usd to settle 2,972 cases worldwide.
'After more than three years of litigation we are currently aware of fewer than 50 cases in the US that in our opinion hold a potential for settlement,' Bayer said, adding 'although we cannot rule out the possibility that additional cases involving serious side effects from Lipobay/Baycol may come to our attention'.
In addition, there could be further settlements of cases outside the US, it added.
Bayer has made 347 mln eur in total provisions for the settlements, 300 mln eur of which was in 2003 and 47 mln eur in 2004.
This is on top of Bayer's insurance cover of 1.2 bln usd for Baycol.