Bayer Stock Price Tumbles on Baycol Withdrawal
August 12, 2001
Bayer announced today that it is withdrawing its cholesterol-lowering drug Baycol / Lipobay from the market due to increasing complaints of side effects. Following the announcement, the drug and chemical giant's stock price plunged to a record low. Bayer produces a variety of products including aspirin, perfume fragrances, and chemicals. Based in Germany, Bayer is Europe's second largest drug and chemical company. Despite its strong presence in the global market, Bayer issued a profit warning in June 2001 to its investors. Experts predict profits will be substantially less than originally forecast.
Bayer officials expected Baycol to bring in nearly $1 billion in sales this year, nearly twice as much as in 2000. As a result of the withdrawal of Baycol, the company expects to lose between $600 and $650 million.
Despite its expected losses, Bayer is still planning on buying Aventis CropScience from Aventis and Schering of Germany. Financial analysts warn that Bayer will be in dire financial straits for the coming years. Baycol was Bayer's greatest hope for a foothold in the pharmaceutical industry. Although the company has other pharmaceuticals in development, they will not be ready for sale for several years.
Cholesterol-reducing drugs are a multi-million dollar business. In the next five years, the market is expected to be worth $25 billion.
-- Article Courtesy of InjuryBoard.com
More ...
- Baycol Settlements on the Rise
- Bayer Wins First Baycol Trial
- Bayer Shareholders File Most Recent Lawsuit Over Baycol
.