Bayer reassesses pharma strategy following cerivastatin withdrawal

In light of the market withdrawal of its cholesterol-lowering drugBaycol/Lipobay (cerivastatin; Marketletter August 13 and page 17 this issue), as well as the economic situation overall, Bayer has expanded its current cost-cutting programs and launched additional measures to improve margins. The news has so far resulted in a near-20% collapse of the company's share price.

Speaking at a press conference in Leverkusen, Germany, on August 13, Bayer chief executive Manfred Schneider said that, "unfortunately this product withdrawal has hit us in the midst of what was already a difficult business situation." However, he stressed, "Bayer is not a company in need of rescue. A major reason for this is that we are so broadly diversified and our strategy is not solely reliant on pharmaceuticals."

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