In July 2011, a board of appeal of the European Patent Office revoked a formulation patent for Yasmin™, Yasminelle™ and YAZ™. Hexal Pharmaforschung GmbH filed an opposition to Bayer’s patent in 2004, but this was rejected by an opposition division of the European Patent Office in 2006. Hexal appealed this decision. Bayer will await and examine the authority’s written statement explaining the grounds for its decision before deciding on further legal steps. Bayer is confident that it can maintain its leading position in the field of women’s healthcare in Europe despite this decision by the board of appeal, although the company assumes the revocation of the patent could have negative effects on the sales and earnings of HealthCare.
Without acknowledging liability, Bayer in July 2011 reached settlement agreements with two groups of attorneys representing U.S. long-grain rice growers in the litigation concerning genetically modified rice (LL RICE). Under these agreements, Bayer will pay in total up to US$750 million to resolve claims submitted by growers. Bayer has established appropriate provisions for these payments. The settlements are contingent on the participation of a sufficient number of growers to represent 85% of U.S. long-grain rice acreage during the pertinent time frame. Bayer believes the future outflows will affect the company’s financial position. Further details are explained in the Notes to the Condensed Consolidated Interim Financial Statements of the Bayer Group under
“Legal Risks.”