If Bayer settles glyphosate-cancer lawsuits, final costs could range from $2.5-$20 billion

| | July 12, 2019
monsanto bayer
This article or excerpt is included in the GLP’s daily curated selection of ideologically diverse news, opinion and analysis of biotechnology innovation.

There’s a $2.5 billion question hanging over Bayer AG. Or perhaps a $20 billion question, depending on who you ask.

As lawsuits mount claiming the embattled German company’s weedkiller Roundup causes cancer, analysts are scrambling to calculate the size of its potential settlement costs. The exercise requires a little math and a lot of reading tea leaves, which is why estimates range from manageable to colossal.

To add to the confusion over the settlement value, the stock market has given its own view of the cost of the Roundup debacle by pummeling Bayer’s shares: the company has lost about $38 billion in value since buying Monsanto. The shares were little changed [on July 11] in Frankfurt.

[Tom] Claps, a legal and regulatory analyst at Susquehanna in New York, says bloated settlement estimates are partly to blame for the stock’s collapse. He puts the settlement in a range of $2.5 billion to $4.5 billion.

Related article:  Sweet corn roadside taste-off: Customers learned, sampled and chose GE over conventional

It makes a massive difference whether Bayer starts winning any of the cases or the appeals process,” said David Evans, an analyst for Kepler Cheuvreux in London.

So Evans has come up with three different scenarios. If Bayer can win all its coming legal battles (a low probability, he notes) it could pay very little. If it keeps losing in court, a settlement may cost a whopping $20 billion. Evans’s middle scenario has Bayer paying about $5 billion.

Read full, original article: Bayer’s Roundup Misery Toll Depends on Who Runs the Numbers

Outbreak Daily Digest
Biotech Facts & Fallacies
Talking Biotech
Genetics Unzipped
a a b b a f ac a

Video: Death by COVID: The projected grim toll in historical context

The latest statistics, as of July 10, show COVID-19-related deaths in U.S. are just under 1,000 per day nationally, which is ...
mag insects image superjumbo v

Disaster interrupted: Which farming system better preserves insect populations: Organic or conventional?

A three-year run of fragmentary Armageddon-like studies had primed the journalism pumps and settled the media framing about the future ...
dead bee desolate city

Are we facing an ‘Insect Apocalypse’ caused by ‘intensive, industrial’ farming and agricultural chemicals? The media say yes; Science says ‘no’

The media call it the “Insect Apocalypse”. In the past three years, the phrase has become an accepted truth of ...
types of oak trees

Infographic: Power of evolution? How oak trees came to dominate North American forests

Over the course of some 56 million years, oaks, which all belong to the genus Quercus, evolved from a single undifferentiated ...
biotechnology worker x

Can GMOs rescue threatened plants and crops?

Some scientists and ecologists argue that humans are in the midst of an "extinction crisis" — the sixth wave of ...
food globe x

Are GMOs necessary to feed the world?

Experts estimate that agricultural production needs to roughly double in the coming decades. How can that be achieved? ...
eating gmo corn on the cob x

Are GMOs safe?

In 2015, 15 scientists and activists issued a statement, "No Scientific consensus on GMO safety," in the journal Environmental Sciences ...
Screen Shot at PM

Charles Benbrook: Agricultural economist and consultant for the organic industry and anti-biotechnology advocacy groups

Independent scientists rip Benbrook's co-authored commentary in New England Journal calling for reassessment of dangers of all GMO crops and herbicides ...
Screen Shot at PM

ETC Group: ‘Extreme’ biotechnology critic campaigns against synthetic biology and other forms of ‘extreme genetic engineering’

The ETC Group is an international environmental non-governmental organization (NGO) based in Canada whose stated purpose is to monitor "the impact of emerging technologies and ...
Share via
News on human & agricultural genetics and biotechnology delivered to your inbox.
Optional. Mail on special occasions.
Send this to a friend