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As a new Fool, I'm shy to post, but one thing might be important in terms of Bayer AG. Bayer AG marketed Baycol, the cholesterol-lowering drug that was pulled from the market by the FDA in August, 2001.

My profession is mass torts (paralegal, not lawyer, so don't shoot me). There are literally thousands, maybe thousands, of plaintiffs going after Bayer AG (and GlaxoSmithKline, which was also involved) who are getting ready to sue the pants off Bayer AG. This won't be as big as the breast implant litigation settlements against Dow years back, but it will be back. I have personally seen documents which suggest Bayer knew that some people developed fatal illnesses after taking Baycol and that they - at the very least - weren't forthcoming with their evidence. That may mean big settlements, or it may not.

In any event, I know I'd be very wary about buying Bayer AG stock anytime soon until this mass tort litigation sorts itself out. Here are a couple of links:

About the withdrawal: http://www.fda.gov/cder/drug/infopage/baycol/default.htm

The mass torts page for all cases in the class action, nation-wide:

http://www.mnd.uscourts.gov/Baycol_Mdl/
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I have personally seen documents which suggest Bayer knew that some people developed fatal illnesses after taking Baycol and that they - at the very least - weren't forthcoming with their evidence. That may mean big settlements, or it may not.

From what I understand Bayer AG is facing roughly 7,800 lawsuits over Baycol. Baycol is suspected of causing around 100 deaths and over 400 cases have now been settled.

It would be interesting to know how much these settlements amount to and whether investors have already priced in extensive lawsuit payments.

My thinking is they already have with Bayer down 43% from a year ago.
The breakup value of Bayer alone is 50% higher than its current share price and the companies stock trades at a mere 14 times the current years earnings.

Looks like a buy to me.

Brian


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