Embattled German pharmaceutical manufacturer Bayer AG has hit back at speculation that it could face damages of up to US$50bn relating to its controversial cholesterol treatment Baycol (cerivastatin). The claims were made by a lawyer representing plaintiffs fighting for compensation from the drug company. Bayer has accused lawyer Mikal Watts of overstating the possible impact of legal action in order to increase the pressure on the company's share price and force it to settle the case. Although Bayer has settled a number of cases out of court (see Germany: 26 February 2003: Bayer Shells Out US$125m for 450 Baycol Lawsuits), it claims that action brought by many plaintiffs is unjustified and will fight these cases. Mikal Watts told the German daily Frankfurter Allgemeine Zeitung that he believed Bayer would face damages of between US$30bn-US$50bn, which would halve share prices.

Bayer has also moved to counter allegations that executives knew of Baycol's side-effects before the drug was launched (see Germany: 24 February 2003: Newspaper Article Points Finger at Bayer Executives Over Baycol Scandal) and took out full-page advertisements in a number of US newspapers over the weekend to this effect. Despite its protestations, pressure on Bayer continues to intensify and continues to scupper plans by the company to merge its drug business with a competitor.