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Bayer Recalls Anti-Cholesterol Drug

Side Effects Prompt Drugmaker To Pull Medication From Shelves

LONDON, 1:18 p.m. EDT August 8, 2001 -- A well-known cholesterol-lowering drug is being pulled off pharmacy shelves.

Pharmaceutical giant Bayer announced a voluntary worldwide recall Wednesday of its drug marketed under the names Baycol and Lipobay.

Bayer says that it's pulling them because of increasing reports of side effects involving muscular weakness in some patients. Interaction with other medications is suspected.

The company says that it will continue to conduct further tests to evaluate the safety of the drug's active ingredient.

-- Anonymous, August 08, 2001

Answers

Whew! Not the one we take. (But maybe it's next!)

-- Anonymous, August 08, 2001

BBC Version - sounds a bit more serious than the "muscular weakness" noted above.

Wednesday, 8 August, 2001, 14:13 GMT 15:13 UK Bayer withdraws drug after deaths Bayer may have to sell its pharmaceutical business

Shares in German chemical and pharmaceutical giant Bayer plunged by 16%, after the firm withdrew one of its most lucrative products.

Bayer said it was pulling Baycol/Lipobay, its anti-cholesterol drug, with immediate effect, because of fears of what it called "a life-threatening side-effect".

The US Food and Drug Administration (FDA) said Baycol could be linked to 31 deaths from severe rhabdomyolysis - a condition that can lead to kidney and other organ failure.

The company has been hit hard by the withdrawal, since Baycol had been expected to generate over 1bn euros (£619m; $876m) in sales this year.

In all, Bayer's 2001 profits could fall by 600m-650m euros - over and above an earlier profit warning from the firm.

The news caused a heavy sell-off in other drugs shares, with GlaxoSmithKline down 2.4% in late-afternoon trading.

Rescue plan

Bayer said it would announce restructuring measures on Thursday, when it presents its second-quarter results.

It would review its drug strategy, but ruled out selling the business.

"The pharma business of Bayer is not for sale," said Bayer chief financial officer Werner Wenning.

Not everyone agrees.

"Bayer has to implement a new strategy for pharmaceuticals, and the options include a joint venture in the business or a disposal," Commerzbank analyst Michael Vara said.

"Baycol was the last hope for Bayer to grow its pharmaceutical business organically. It has other drugs in the pipeline, but they won't come on stream for several years."

Bayer has been seen as a prime takeover candidate, after falling behind the global giants of the pharmaceutical business over the last 10 years.

Another chemical company is unlikely to bid for Bayer but a corporate finance house might make a break-up bid for the company, Commerzbank's Michael O Sullivan told BBC's World Business Report.

Drug problem

This is the second time this year that Bayer has been hit by problems in its pharmaceutical portfolio.

Shipments of the haemophilia drug Kogenate were halted in January after an FDA inspection found bacteria present in some of the manufacturing stages.

In late June, the firm warned that its 2001 profits would fall below expectations.

The company, which had earlier predicted an increase on last year's 3.3bn euro operating income, said it forecast a 10% drop.

-- Anonymous, August 08, 2001