contraceptive

Bayer concludes supply and licensing agreements for Yasmin® and YAZ® with Barr for the United States
Appeal of court decision invalidating Yasmin patent will continue / Further growth of Bayer's Women's Healthcare Business Unit expected
Berlin/Leverkusen, June 24, 2008 - Bayer and Barr Laboratories Inc. today signed supply and licensing agreements for Yasmin® and YAZ® for the United States. Bayer will supply U.S. generics manufacturer Barr, starting July 1, 2008 at the latest, with a generic version of its oral contraceptive Yasmin, which Barr will market solely in the United States. Barr will pay Bayer a fixed percentage of the revenues from the product sold by Barr.
Bayer will continue to pursue its appeal of a March 2008 New Jersey court's decision that invalidated Bayer's U.S. patent '531 for Yasmin. If Bayer prevails in its appeal, Bayer will receive a larger share of Barr's revenues from the product.

"The agreements allow us to participate in the U.S. market for generic oral contraceptive in partnership with an established player," said Dr. Gunnar Riemann, Member of the Board of Management of Bayer HealthCare AG. "We expect our global Women's Healthcare business to continue posting high-single-digit to low-double-digit percentage annual growth rates in the coming years thanks to the products we already have on the market and to new, promising developmental products."

It has also been agreed that Bayer will grant Barr a license to market a generic version of YAZ - like Yasmin, a product in the drospirenone family - in the United States starting July 1, 2011. Bayer will supply Barr with the product for this purpose. Should Bayer lose patent lawsuits in the United States against other companies concerning YAZ, at that time Bayer will begin supplying the product to Barr and Barr will begin marketing generic YAZ in the United States. Barr will pay Bayer a fixed percentage of the revenues from the product sold by Barr.