Bayer Pays 1.138 Bln Usd to Settle 3,017 Baycol CasesAug 10, 2005 | AFX
Bayer AG said that as of June 30 it has paid 1.138 bln usd to settle 3,017 cases worldwide related to its former cholesterol-lowering blockbuster drug Baycol (Lipobay), which was withdrawn from the market three years ago for safety reasons.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 chemicals and pharmaceutical hybrid has paid on average 377,195 usd to settle each case.
It said there are now 5,986 cases pending compared to 'fewer than 6,000' as announced at the annual general meeting.
On May 10, Bayer said it had paid 1.133 bln usd to settle 2,995 cases worldwide.
''After nearly four 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.
Bayer has made 371 mln eur in total provisions for the settlements, 300 mln eur of which was in 2003 and 47 mln eur in 2004, with an additional 24 mln charge to the operating result in the second quarter this year.
This is on top of Bayer's insurance cover of 1.2 bln usd for Baycol.