Shares of Bayer AG, Germany's largest drugmaker, fell to a nine-year low on concern that the number of legal claims involving its withdrawn cholesterol treatment Baycol may double.

A Chicago lawyer who filed a class-action lawsuit on behalf of Baycol patients worldwide, predicted as many as 15,000 cases, HSBC Holdings PLC said in a report. Bayer said earlier this month it knew of 7,400 lawsuits involving the drug, which has been linked to more than 100 deaths. Bayer shares have dropped as the number of lawsuits mounts from patients who contend they were harmed by the cholesterol- lowering medication, once Bayer's third-best-selling product.

"When such numbers appear from the plaintiff side, it's about raising the pressure on Bayer and gaining as much from it as possible," said Alexander Kachler, an analyst at Merck, Finck & Co. in Munich, who rates the stock "hold."

Bayer paid up to US$1.25-million to settle cases involving fatalities, Mr. Moll said, according to HSBC.

Bayer shares fell US16 cents, or 0.88%, to US$17.99 in New York, after dipping to US$17, which breached their 52-week low. The shares have fallen 56% in the past 12 months.

The yield on Bayer's 3-billion of 5.375% notes maturing in April, 2007, rose to 4.17%, 104 basis points more than German government debt of similar maturity. Yesterday the spread, or risk premium, was 91 basis points above German government debt.

Bayer may have to pay as much as US$1.6-billion to settle all the lawsuits, HSBC said, while reiterating its "buy" rating on the company's stock. Some analysts have estimated the settlements may cost Bayer US $9-billion or more. Bayer said earlier this month it has settled 400 lawsuits.

"It's difficult to estimate the costs," said Werner Braun, an analyst at Bankhaus Reuschel & Co., who rates Bayer "neutral." "It doesn't make sense to simply multiply the average settlement by the number of cases."

Bayer spokeswoman Annette Josten declined to comment on the number of lawsuits or the size of settlements. Mr. Moll wasn't immediately available to comment, according to his office.

Bayer hasn't set aside reserves to cover possible payments as its insurance should cover costs, CEO Werner Wenning has said.

The company has said it's not liable for the Baycol deaths because it warned doctors muscle problems could result if Baycol was prescribed with a second cholesterol drug, gemfibrozil. Bayer says it withdrew Baycol when it realized the warning wasn't being heeded.

The first class action trial will be on June 6. The trial process could take two or three years.