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Wall Street Journal: Costly glyphosate-cancer legal battle one of ‘worst crises’ in Bayer’s 155-year history

Stuck in one of the worst crises in its 155-year history, Bayer AG, the German company that invented aspirin and owns a team playing in the country’s top soccer league, is worth less today than the $63 billion it paid for Monsanto Co.

Bayer’s market capitalization has shrunk over 40% since it closed the Monsanto deal a year ago to roughly €53 billion. Investors are increasingly abandoning the stock: They are worried that Bayer’s liabilities from Monsanto’s allegedly carcinogenic weedkiller Roundup are only going to rise, pushing shares into a downward spiral.

Bayer and some investors say more cases need to be tried and appeals heard before the direction of the legal fight becomes clearer. Other investors say only a win in court right now would help them regain confidence in the company.

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With no way to compute the scale of any final liability—awards so far range from $78.5 million to more than $2 billion—investors have sent Bayer’s shares down 40% in the past year.

“Bayer is in a dangerous situation,” said Marc Tüngler, who heads DSW, Germany’s association of private shareholders. “It’s no longer in the driver’s seat.”

Read full, original article: Bayer’s Roundup Woes Send Investors Fleeing (Behind Paywall)

The GLP aggregated and excerpted this article to reflect the diversity of news, opinion, and analysis. Click the link above to read the full, original article.
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