The German pharmaceutical and agrochemical conglomerate Bayer is once again in the spotlight of investors, and not for positive reasons. In early trading on Monday, the company's shares underwent a decline of 1.15 percent to 27.12 euros, which made it one of the laggards in the DAX. This development threatens to push Bayer below the 21-day line, an indicator that signals short-term trends. In the year 2024, Bayer has already recorded a decrease of 19 percent, making the conglomerate one of the weakest performers in the leading German index.
Once again, the spotlight is on the herbicide Roundup (glyphosate), which has been financially burdening Bayer for years. In a recent legal dispute in Jefferson City, Missouri, Judge Daniel Green reduced the compensatory damages originally awarded by a jury from 1.5 billion US dollars to 600 million US dollars, but this represents only a small glimmer of hope for Bayer. In the past, compensation claims in similar cases were significantly more reduced by judges. It is expected that Bayer will appeal the current verdict.
The continuous struggle with the legal disputes regarding the glyphosate-containing weed killer has already cost the company billions of Euros and continues to weigh heavily on the share price. In addition, a recent setback in drug development and a partly sobering business performance caused the Bayer share price in March to drop to a low since 2005.
