Bayer Halts Construction of $200 Million Baycol Project in Response to Drug Warnings

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Researched by Industrialinfo.com (Industrial Information Resources, Inc.; Houston, Texas) Bayer AG (Leverkusen, Germany) has abandoned a project that began construction in June 2001 to produce cervistatin, the key ingredient in Bayer's cholesterol-lowering drug Baycol. Jacobs Engineering Group (Cincinnati, Ohio) had been awarded the Engineering, Procurement and Construction contract for the now cancelled project.

With dozens of reported deaths across the world, Bayer AG has withdrawn their profitable cholesterol-lowering drug Baycol from the market. The apparent cause of the deaths was an adverse muscle reaction, where the muscles break down and the contents of the cells are released into the bloodstream. On August 13, 2001, Bayer's head of US Medical Science, E. Paul MacCarthy, released a letter to US healthcare professionals labeled Important Drug Warning that included the announcement Effective immediately, Bayer has discontinued the marketing and distribution of all dosage strengths of Baycol.

Bayer had expected Baycol sales to reach $890 million by the end of 2001, and anticipated a possible $2.7 billion in sales by 2004. Bayer is an international, research-based group with major businesses in health care, agriculture, polymers and specialty chemicals. Founded in 1863 by Friedrich Bayer and Johann Friedrich Weskott, Bayer has some 120,000 employees worldwide. The Group recorded net profit of EUR 1.8 billion on sales of EUR 31 billion in 2000.