Pharma

Bayer stock stabilizes despite ongoing glyphosate disputes

Bayer is struggling with ongoing legal risks related to glyphosate, while the stock remains under significant pressure in 2024.

Eulerpool News Dec 10, 2024, 2:33 PM

Bayer's shares in the pharmaceutical and agrochemical company continued their base-building attempt on Monday, rising by 1.4 percent to 20.29 euros. The reason for the slight recovery was a "mistrial" in a U.S. court case regarding alleged cancer risks from glyphosate-based weed killers in the state of Illinois. The plaintiffs had requested the declaration of a mistrial, which temporarily relieved Bayer.

Despite the price increase, Bayer remains the laggard in the German leading index DAX with a minus of around 40 percent in 2024. In addition to weak agricultural business, the ongoing uncertainty regarding the approval of the herbicide Dicamba in the USA for the 2025 sowing season is burdensome. Above all, however, the glyphosate issue continues to weigh heavily on the company.

The legal disputes over glyphosate have been simmering since the acquisition of the US agrochemical company Monsanto in 2018. Shortly after the acquisition, Bayer lost the first trial in the USA, which triggered a wave of lawsuits. To date, Bayer has already had to spend several billion euros in this context. The company continues to hope for a landmark ruling from the Supreme Court that could provide clarity. However, it is uncertain whether the highest US court will take up the case.

The impact of glyphosate lawsuits has severely affected Bayer since 2018. While the company's market value was just under 92 billion euros before the first negative verdict, it has now fallen to around 20 billion euros.

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