[Ip-health] Bayer press release on Cipro deal

[Mike Palmedo]

http://www.news.bayer.com/news/news.nsf/ID/01-0350

Bayer to Supply Government by Year-End With 100 Million Tablets for $95
Million

Bayer, HHS Complete Cipro Agreement; Americans Assured of Ample Supplies
of Cipro To Combat War on Bioterrorism
Secretary Thompson Commends Bayer - Government Has Option to Purchase An
Additional 200 Million Tablets - Bayer Announces Four Million Cipro
Tablets for Emergency Workers - In Fight Against Anthrax and Postal
Workers who may have been exposed
    
 
Washington, DC -- October 24, 2001 -- Bayer Corporation announced today
that it has reached an agreement to supply up to 300 million tablets of
Cipro to the U.S. government. The company said it signed the historic
agreement this afternoon with Secretary Tommy G. Thompson of the U.S.
Department of Health and Human Services.

Bayer has also donated two million tablets of Cipro to the U.S.
Department of Health and Human Services for emergency workers working on
the frontlines in the fight against anthrax. Another two million tablets
have been donated to postal workers who may have been exposed to
anthrax-laden envelopes.

Under the terms of the agreement valued at $95 million, HHS will pay 95
cents per tablet, for a total initial order of 100 million tablets. This
is compared to a previously discounted price of $1.77 per tablet paid by
the federal government. Bayer said that it will rotate the government's
inventory, as part of this agreement, to assure the American public a
continuously fresh supply of Cipro. This inventory rotation adds an
additional value of 30 percent for the government, which is included in
the agreement. 

Helge H. Wehmeier, President and CEO of Bayer Corporation, said, "Bayer
is fully committed to supporting America in its war on bioterrorism.
This agreement between Bayer and the Department of Health and Human
Services is an important security measure that will enable the nation to
have in its stockpile ample supplies of Cipro to combat the threat of
anthrax. Cipro has become the standard for anthrax treatment. The men
and women of Bayer are 100% committed to delivering this vital
antibiotic to the U.S. government on schedule."

HHS Secretary Tommy G. Thompson said, "I commend the Bayer Corporation
for its ongoing efforts to ensure a fully adequate supply of this
valuable product. This agreement means that a much larger supply of this
important pharmaceutical product will be available if needed."

The agreement with HHS, calls for Bayer to manufacture and ship 100
million tablets of Cipro by year-end. The U.S. has an option to purchase
an additional 200 million tablets of Cipro. The government already has a
large stockpile of Cipro for use in its fight against anthrax.

Last week, Bayer announced that it had ramped up its global
manufacturing capacity and activated its worldwide supply network for
Cipro to fulfill the needs of the United States and other countries. 

Bayer said it will also supply an additional 100 million Cipro tablets
for distribution to U.S.-based pharmacies and hospitals.

Dr. Wolfgang Plischke, President of Bayer Corporation's Pharmaceutical
N.A. Division, said, "We are grateful that our researchers developed a
product that is crucial in this hour of need. The people of Bayer are
very motivated and dedicated to playing an important role in assuring
that the American people have adequate quantities of Cipro, which we
pray are never needed." 

Bayer Corporation produces a broad range of health care, life sciences
and chemical products that help diagnose and treat diseases, purify
water, preserve local landmarks, protect crops, advance automobile
safety and durability and improve people's lives. 

Headquartered in Pittsburgh, Bayer Corporation had sales of $10.1
billion in 2000 and is one of Fortune magazine's Most Admired Companies.
The company employs 23,200 people. It is a member of the worldwide Bayer
Group, a $29 billion international health care and chemicals group based
in Leverkusen, Germany. The Bayer Group (BAYG.DE) stock is a component
of the DAX, and is listed on multiple foreign exchanges.


Forward-Looking Statements

This news release contains forward-looking statements based on current
assumptions and forecasts made by Bayer Group management. Various known
and unknown risks, uncertainties and other factors could lead to
substantial differences between the actual future results, financial
situation, development or performance of the company and the estimates
given here. The company assumes no liability whatsoever to update these
forward-looking statements or to conform them to future events or
developments.