Bayer Shares May Suffer on Baycol Lawsuits

Shares of Bayer, Germany’s biggest drug maker, may fall after court documents suggested the company promoted its now-withdrawn anti-cholesterol drug Baycol even after it was aware that patients using it became ill or died.

Bayer knew of potential problems with Baycol, which has been linked to more than 100 deaths and muscle-weakening, as early as 1997, when the drug was approved in the U.S., according to e-mail messages, memos and depositions made public by lawyers suing Bayer and marketing partner GlaxoSmithKline.

Baycol was Bayer’s third best-selling drug when it withdrew it in August 2001. Since then the stock has lost two-thirds of its value. A former Baycol user is seeking more than $100 million in the first case to come to trial, which began last week in Corpus Christi, Texas.

The company is facing more than 7,800 lawsuits, and has settled 400. The settlements have ranged from $200,000 to $1.2 million each, according to the New York Times.

Bayer shares rose 29 cents to $17.15 on Friday on the New York Stock Exchange.

Bayer lawyer Philip Beck said the company believed Baycol was safe and effective when it was prescribed and used as directed. Bayer strengthened warning labels as it gathered more information on side effects from the drug, he said.