Bayer stock surges on court win

Bayer stock surges on court win

Baycol is known as Lipobay outside the US

Shares in German drug giant Bayer leapt 33% after it was cleared of any liability in a $560m (£353m) US lawsuit over withdrawn anti-cholesterol drug Lipobay.

The company was accused of ignoring reports linking the drug, known as Baycol in the US, with health problems and deaths.

A Texas jury rejected claims Bayer should pay damages to 82-year-old Hollis Haltom.

Mr Haltom said he developed a potentially fatal muscle disorder after taking Baycol.

Insurance warning

The verdict is the first in 8,400 lawsuits involving Baycol.

Bayer shares plunged last week when it warned the potential cost of damages may exceed its insurance cover.

But news the company's victory in the Texas court boosted shares by 33% at 13.85 euros.

Baycol and Lipobay were withdrawn from the market in 2001 after more than 100 deaths were linked to the drug.

Vigorous warnings

The Texas lawsuit tried to portray Bayer as overly eager to jump into the lucrative US market for cholesterol-fighting drugs.

About 8 million Americans use the drugs to lower their risk of heart attacks.

The jury was shown e-mails, memos, and other internal company documents it was claimed showed the company disregarded potentially disturbing research on Baycol.

But Philip Beck, the attorney for Bayer, argued the company vigorously warned marketers and physicians before withdrawing the drug.

Mr Beck also said Mr Haltom was blaming unrelated diseases on the drug.