BAYRY - Bayer Aktiengesellschaft

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18.82
+0.24 (+1.29%)
At close: 3:59PM EDT
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Previous Close18.58
Open18.93
Bid0.00 x 0
Ask0.00 x 0
Day's Range18.69 - 18.99
52 Week Range12.55 - 21.59
Volume536,458
Avg. Volume635,751
Market Cap72.839B
Beta (5Y Monthly)1.29
PE Ratio (TTM)10.20
EPS (TTM)1.84
Earnings DateN/A
Forward Dividend & Yield0.76 (4.05%)
Ex-Dividend DateApr 29, 2020
1y Target Est22.50
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  • Moody's

    Bayer US Finance II LLC -- Moody's affirms Bayer's Baa1 rating, changes outlook to stable

    Moody's Investors Service, ("Moody's") has today affirmed Bayer AG's (Bayer) senior unsecured rating at Baa1, concurrently the rating agency has affirmed the company's senior unsecured MTN program rating at (P)Baa1, the ratings of its hybrid notes at Baa3 and Bayer's short-term commercial paper rating at P-2. Today's rating action follows Bayer's announcement that it has reached an agreement to resolve major legacy Monsanto litigations, which include current and potential future Roundup litigation, dicamba drift litigation and most PCB (polychlorinated biphenyl) water litigation. The total payments Bayer agreed to under this agreement will be in the range of $11.3 billion to $12.1 billion.

  • Financial Times

    Werner Baumann: Bayer boss takes an expensive step on road to redemption

    Just over a year ago, Werner Baumann’s decades-long career at German pharmaceuticals and chemicals giant Bayer looked like it could come to a sorry end. The chief executive, born a mere 50km from the company’s Leverkusen headquarters, had become the first blue chip boss in the country’s modern history to lose a confidence vote at an annual meeting, after masterminding the ill-fated $63bn takeover of American agrochemical group Monsanto in 2018. The catalyst for the extraordinary rebuke by shareholders was an avalanche of legal cases in the US in which Monsanto’s key product, the glyphosate-based herbicide Roundup, was alleged to be carcinogenic.

  • Bayer Isn’t Out of the Roundup Woods as 30,000 Claims Remain
    Bloomberg

    Bayer Isn’t Out of the Roundup Woods as 30,000 Claims Remain

    (Bloomberg) -- While Bayer AG said it took a major step toward wrapping up litigation over its Roundup weedkiller with a settlement of almost $11 billion, the company still faces about 30,000 unresolved cancer claims that could cost billions, and lawyers are vowing even more lawsuits.“If Bayer and its investors thought the Roundup litigation was wrapped up in a nice, neat ball with this settlement, they are sadly mistaken,” said Tom Kline, a Philadelphia-based plaintiffs’ lawyer who won an $8 billion verdict against Johnson & Johnson last year over one of its anti-psychotic drugs. “We are working hard getting these cases in and ready for trial.”Roundup litigation was by far the biggest liability that the German chemical giant inherited when it acquired Monsanto for $63 billion in 2018. On Wednesday, Bayer announced settlements totaling $12.1 billion that included as much as $10.9 billion for Roundup, $820 million for toxic-chemical pollution and $400 million related to damage from a dicamba-based herbicide.But Bayer only managed agreements to end about 95,000 of the 125,000 lawsuits claiming Roundup caused cancer. The others refused to settle, and the number of cases is growing. Last week, attorney Fletch Trammell filed 13 suits on behalf of kids who developed non-Hodgkin’s lymphoma after being exposed to the weedkiller in backyards, parks and playgrounds.Read More: How Roundup Went From Bayer Asset to Burden“The settlement announcement feels like Bayer is trying to stop a gigantic problem by putting its finger in the proverbial dam,” said Jason Itkin, a Houston based lawyer who won a $70 million verdict against J&J last year. “Every day, new people are diagnosed with Roundup-induced cancer. There will be thousands and thousands of future cases because Bayer is currently still selling this dangerous product.”The company denies Roundup’s active ingredient, glyphosate, is a carcinogen, a position backed by the U.S. Environmental Protection Agency.William Dodero, Bayer’s global head of litigation, said at a press conference Wednesday he couldn’t predict how many new Roundup cases will emerge. But the Leverkusen, Germany-based company has made progress in ending its Roundup litigation, resolving all the cases set for trial and those brought by the plaintiffs’ lawyers leading the litigation, Dodero said.The settlements must still be approved by a federal judge in San Francisco who has some of the cases consolidated before him.“This litigation has been going on for four years with speculation about settlement for more than a year and plaintiff attorneys have had ample opportunity to bring forward claims,” Chris Loder, a company spokesman, said in an emailed statement. “We’ve now settled approximately 75% of claims, resolved cases with all leaders” on the plaintiffs side and “have an allowance to resolve the remaining cases.”Shareholders seemed to welcome the agreements. Bayer’s American depositary receipts climbed on the settlement news, gaining as much as as 5%. The ADRs, which represent one-quarter of a regular share, were up 15 cents to $20.54 at 5:19 p.m. in New York.The company made offers to all the holdouts and is “confident that we can bring this to a final closure in due course,” Dodero said.Too LowBut Bayer’s settlement offers were insultingly low, according to James Onder, a St. Louis lawyer who held his 24,000 cases out of the settlement.“The unsettled legal exposure for Bayer could easily exceed tens of billions of dollars as our firms and others have rejected the minuscule offers accepted by some other lawyers,” Onder said in an email. “To act as if one quarter of the Roundup cancer victims don’t exist is nothing more than a flagrant attempt by Bayer to manipulate its stock price and serves as a slap in the face” to those victims, he said.After Bayer officials refused to make “serious” settlement offers, Trammell said he filed the 13 state court cases on behalf of families who say their children developed non-Hodgkin’s lymphoma from Roundup exposure. Eleven suits were filed in St. Louis last week and the others were file in San Francisco, he said.The children range in age from five to 17, according to court filings. Most are still battling their cancers, but 13-year-old Jacob Savage of Forks, Washington, died in 2017. Bayer has been hit with at least 20 other suits involving children and Roundup, court dockets show.“I’m happy they didn’t settle with me and that I can go out and get more good cases,” said Mark Robinson, a California attorney. “These guys need a couple of more verdicts against them to start valuing the cases properly.”The company lost three damage verdicts totaling more than $191 million. While those cases are on appeal, they spurred a surge in new filings over the past year that led to a plunge in Bayer shares.Precautions taken by courts during the Covid-19 pandemic -- including suspensions of jury selection -- may make it difficult for any of the plaintiff laywers to get cases set for trial until at least next year, said Ken Feinberg, who is serving as the chief settlement mediator in the Roundup cases.“I predict all the remaining cases will settle within a few months,” Feinberg said. “People are going to want their share of this settlement.”Glenn Norton, a retired Missouri appellate judge who served as a mediator for cases in St. Louis and worked with Feinberg on national settlements, said lawyers whose cases weren’t part of Wednesday’s agreement are still “determined to get them settled, too.”Norton said “Bayer paid a little more than people thought they would” to resolve most of the Roundup cases, which shows company officials were keen to get as much of the litigation behind them as possible.The consolidated case is In re: Roundup Products Liability Litigation, MDL 2741, U.S. District Court, Northern District of California (San Francisco).(Updates comment from mediator Norton. An earlier version of this story corrected a comment by the chief mediator, Feinberg.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • TheStreet.com

    Bayer Will Settle Roundup Claims for Up to $10.9 Billion

    Bayer will make a total payment of $10.1 billion to $10.9 billion to settle the claims that Roundup caused cancer.

  • Why Make a Needless Enemy Out of Paul Singer’s Elliott?
    Bloomberg

    Why Make a Needless Enemy Out of Paul Singer’s Elliott?

    (Bloomberg Opinion) -- Activist-in-chief Elliott Management Corp. sometimes nudges companies to agree with its strategic ideas in private. The target firm then announces a new plan or some stretching targets and gets an endorsement from the feared hedge fund at the same time, sparing itself a public battle. Think of recent shifts by enterprise software group SAP SE and life-sciences group Bayer AG that met with simultaneous applause from Elliott. Dutch insurer NN Group NV, with a fresh chief executive officer, has chosen confrontation.Investors see insurance as dull and complicated and best left to experts. That creates a shortage of buyers for some quality stocks. NN is a classic case, Elliott reckons, and its shares should be double the current price. The company just needs to get investors to stop seeing it as a mysterious black box. To Elliott, it’s a reliable dividend machine which, run more aggressively, could pay out even more cash to shareholders.The activist tried to influence new CEO David Knibbe behind the scenes in the run up to this week’s strategy day. That evidently didn’t work so Elliott started a campaign, calling on NN to cut costs and shift some of its government bond portfolio into riskier but higher-yielding corporate bonds to boost annual cash flow. That would justify setting a target for 7 billion euros ($8 billion) of free cash flow over the next five years.The fund also wanted Knibbe to release capital by hedging out more of the company’s exposure to longevity — policyholders living longer — and by selling assets. It wanted a 3 billion-euro target for that, some one-third of the market capitalization.In true insurance style, NN’s rebuttal is oblique. Knibbe’s pledge has set a goal for organic capital generation, most of which will turn into free cash flow, for 2023. That will be achieved partly by moving into riskier investments, as Elliott requested. The number, 1.5 billion euros, is consistent with Elliott’s five-year cumulative target. A shame then that NN couldn’t just make the commitment Elliott sought.Meanwhile, Elliott wants NN to say it will pay out 80% of its free cash flow in dividends. NN is pledging to raise the dividend each year in line with its business performance without committing to a particular payout ratio. Again, the two sides aren't so far apart.The real differences are on the one-off capital releases. NN says it’s open to doing more longevity transactions, and to jettisoning units that don’t earn their cost of capital. But again, there’s no commitment to releasing a specific amount of capital this way. Its position is defensible: Insurers need to be careful with anything that weakens solvency as regulators can be capricious. What seems like excess capital one day can be essential the next.Even so, there’s enough common ground here that it’s odd that Elliott’s engagement didn’t culminate in a joint announcement this week, SAP-style. NN has now played into Elliott’s hands by being conservative on its targets and vague on precisely what might trigger a capital return. Between them, Elliott and the company have pushed out over 200 pages of slide presentations in the last month. The way to pull in new investors here is clarity and simplification, and this battle is hardly helping. No wonder the shares have gone nowhere.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bayer Draws Uncertain Line Under Roundup in $12 Billion Deal
    Bloomberg

    Bayer Draws Uncertain Line Under Roundup in $12 Billion Deal

    (Bloomberg) -- Bayer AG’s $12.1 billion settlement to resolve U.S. lawsuits over its flagship weedkiller Roundup and other products offered only fleeting relief to investors looking to move on from the legal woes that have hobbled the stock for almost two years.The shares declined as much as 2% in Frankfurt trading, erasing early gains a day after the German company’s move to resolve a trio of major litigation risks that soured its $63 billion purchase of Monsanto.Getting past the legal drama is crucial for Chief Executive Officer Werner Baumann, but the milestone settlement left open the potential of more lawsuits. Bayer still faces about 30,000 unresolved cancer claims that could cost billions, and lawyers vowed to keep pressuring the agriculture-chemicals giant.“If Bayer and its investors thought the Roundup litigation was wrapped up in a nice, neat ball with this settlement, they are sadly mistaken,” said Tom Kline, a Philadelphia-based plaintiffs’ lawyer who won an $8 billion verdict against Johnson & Johnson last year over one of its anti-psychotic drugs. “We are working hard getting these cases in and ready for trial.”Bayer on Wednesday announced settlements that included as much as $10.9 billion for Roundup, the embattled weedkiller inherited from Monsanto, $820 million for toxic-chemical pollution and $400 million related to damage from dicamba, another herbicide.The deal includes agreements to end only about 95,000 of the 125,000 lawsuits claiming Roundup caused cancer. The others refused to settle, and the number of cases is growing. Last week, attorney Fletch Trammell filed 13 suits on behalf of kids who developed non-Hodgkin’s lymphoma after being exposed to the weedkiller in backyards, parks and playgrounds.“The settlement announcement feels like Bayer is trying to stop a gigantic problem by putting its finger in the proverbial dam,” said Jason Itkin, a Houston based lawyer who won a $70 million verdict against J&J last year. “Every day, new people are diagnosed with Roundup-induced cancer. There will be thousands and thousands of future cases because Bayer is currently still selling this dangerous product.”Former Roundup users blame glyphosate for their non-Hodgkin’s lymphoma and other cancers. The Leverkusen, Germany-based company denies glyphosate is a carcinogen, a position backed by the U.S. Environmental Protection Agency. A federal judge ruled earlier this week that California officials can’t force companies to place warning labels on glyphosate-based products.Paying DebtBayer faced a surge in new lawsuits last year after it lost several U.S. jury trials, and investors issued a rare rebuke to Baumann last spring. Some, including Elliott Management Corp., urged the company to seek a comprehensive settlement.Bayer executives said the deal shouldn’t affect the company’s credit rating or dividend policy and that paying down its large debt load from the Monsanto transaction remains a “high priority.” Payments can be funded with cash on hand, future free-cash flow, the sale of Bayer’s animal-health unit and potentially by issuing bonds, officials said.Still, the cost of resolving most of the litigation will slow the company’s ability to pay down debt, wrote Moritz Melsbach, an analyst for Moody’s.Under the terms of the Roundup settlement, Bayer will set up a $1.25 billion fund to cover future cancer claims. That money will also be used to provide financial assistance to struggling cancer patients and support research into whether the weedkiller’s active ingredient is a carcinogen, the company said.Individual payouts may range from several hundred thousand dollars per case to less than $50,000.The accord allows Bayer to continue selling Roundup in the U.S. for use in backyards and farms without any safety warning, and plaintiffs’ attorneys who settled their case inventories agreed to stop taking new Roundup clients.Retired Judge Glenn Norton, who served as a mediator to help negotiate the agreement, said that Bayer’s lawyers and the attorneys for Roundup users who haven’t yet reached deals are “determined to get them settled, too.”Norton, who served 14 years as an appellate judge in Missouri, was tapped by the judges presiding over Roundup cases in the city of St. Louis and St. Louis County to serve as mediator for the Bayer litigation in those courts.The uncertainty of getting trial dates amid the pandemic played a role in bringing both sides together to hash out the deals, Norton said. The lack of trials allowed lawyers to focus on overcoming disputes about value of the cases, he added.What Bloomberg Intelligence Says“Suits can still be pursued by those not part of the deal or those who allege injury in the future, but it’s very likely potential claims are legally flawed.”\--Holly Froum, analystRead report here.Three California juries in a row have ruled against the company and ordered it to pay damages to former Roundup users. The next cases could be brought in state court in St. Louis. Bayer is appealing the cases it has lost.“The remaining cases are in the hands of lawyers who know how to litigate, so we’re going to see some more Roundup trials in the future,” said Fletch Trammell, a Texas-based lawyer who held his roughly 5,000 cases out of the settlement. “This litigation is far from over.”The consolidated federal case is In RE: Roundup Products Liability Litigation, MDL 2741, U.S. District Court, Northern District of California (San Francisco).(Updates with share decline in 2nd paragraph, comments from retired U.S. judge from 15th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bayer Settles Most Cases Related To Roundup Herbicide For Up To $10.9B
    Benzinga

    Bayer Settles Most Cases Related To Roundup Herbicide For Up To $10.9B

    Bayer AG (OTC: BAYRY) will pay between $10.1 to $10.9 billion to resolve litigation over the weedkiller Roundup. What Happened Bayer inherited the litigation after it acquired Monsanto Co in 2018, the original maker of the herbicide Roundup. The resolution will allow Bayer to settle tens of thousands of lawsuits filed in the United States, alleging Roundup causes cancer.Werner Baumann, CEO of Bayer, said regarding the settlement, "It resolves most current claims and puts in place a clear mechanism to manage risks of potential future litigation." Baumann called the settlement "financially reasonable" and said it allows the company to "focus fully on the critical supply of healthcare and food." Bayer is not admitting to any wrongdoing and will keep on selling Roundup as it claims that the active ingredient in the formulation does not cause cancer.Why It Matters According to Bayer, the resolution will bring closure to nearly 75% of cases involving Roundup spanning approximately 125,000 filed and unfiled claims. Bayer said it is setting aside between $8.8 billion to $9.6 billion to cover agreements it has signed and those under negotiation with plaintiffs. The company is also earmarking $1.25 billion to pay for a separate class agreement that addresses future litigation. Bayer investors have been wary about litigation and the associated costs after Bayer purchased Monsanto, reported the WSJ.There is still room for further litigation, and more lawsuits can be filed against the multinational pharmaceutical giant.Bayer also settled two other Monsanto cases Wednesday involving a different weedkiller and a banned toxic chemical.Price Action On Wednesday, Bayer OTC shares closed 0.74% higher at $20.54. The company's shares traded 0.59% higher at $79.14 in Frankfurt at press time on Thursday.Image by WikimediaSee more from Benzinga * Tesla Wants To Build A 24-Hour Automotive Battery Plant In Fremont: Report * SoftBank CEO Masayoshi Son Stepping Down From Alibaba's Board * California Attorney General To Ask Judge To Classify Lyft, Uber Drivers As Employees(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Reuters

    MORNING BID-Relapse or reset

    The United States said it would impose tariffs on a range of European goods. The International Monetary Fund predicted world growth would shrink 4.9% and cut its U.S. forecast by 2 percentage points, now expecting it will shrink 8%.

  • Financial Times

    Bayer: tort, a lesson

    Bayer has learnt that lesson the hard way. The German conglomerate on Wednesday agreed to pay up to $10.9bn to end tens of thousands of lawsuits alleging its Roundup weedkiller caused cancer. The settlement goes some way towards drawing a line under the legal woes Bayer inherited when it acquired US seeds giant Monsanto back in 2018.

  • $11 Billion Gets Bayer the Roundup Closure It Can
    Bloomberg

    $11 Billion Gets Bayer the Roundup Closure It Can

    (Bloomberg Opinion) -- Bayer AG has at last reached a settlement to end most of the current lawsuits alleging its Roundup weedkiller causes cancer. Whether the German life-sciences group has put this saga completely behind it is less clear, but it has achieved what closure it can.The headline number of $11 billion is in the region that analysts had estimated it would cost to settle litigation around the product, which was inherited in the acquisition of Monsanto Co. in 2018. As much as $9.6 billion of the total will go to law firms handling current claims, of which 75% are now resolved. Logistical challenges and holdouts probably precluded striking deals with the remaining 25%, but the overall sum includes an allowance for resolving those claims. It’s plausible that the core deal here covers the strongest suits most likely to go to court.Bayer always wanted an agreement to be as final as possible. This meant tackling the issue of future claims. It doesn’t want them going before a jury. So it is to create a scientific panel to decide whether glyphosate, the compound in Roundup, causes non-Hodgkin’s lymphoma. Future claims, it says, will depend on a class agreement heeding its findings. Bayer will provide $1.3 billion to support the panel’s work and this separate legal process, as well as assistance for cancer patients.Citing existing science, the company says it is highly confident the panel will conclude glyphosate is safe. What if the panel decides otherwise? Bayer says plaintiffs will then have to prove they were exposed to dangerous levels of the weed-killer. But there’s no specific number for paying out on any future claims.The results of this new scientific work on glyphosate are perhaps several years away. It is hard for the company to make any financial provision against a possibly negative outcome now, especially one which it believes won’t happen. But the theoretical risk of a new wave of payouts in future may weigh on investors’ minds even if the noise around Roundup quietens down in the meantime.Clearly, Bayer management is displeased that it is having to pay out these sums in relation to a product it asserts is safe when used properly. From its perspective, the problem is the U.S. legal system and the challenges facing lay juries weighing scientific data. The settlement gets Roundup out of court now and makes scientists weigh the evidence in future.For sure, Bayer was right to see that the sheer volume of cases made contesting the claims an unrealistic endeavor. That would have meant years of bad publicity from the courtroom arguments. Over time, Bayer’s standing in society would get eroded. Just consider the revelations about Monsanto’s conduct that have come to light.For now, Bayer can now get on with making the Monsanto acquisition deliver. The settlements costs, to be spread over two years, are affordable and Bayer’s dividends won’t be affected. But the shares are still badly trailing the sector even with investors having long expected this deal. It must feel like the end of a long journey for CEO Werner Baumann. But the hurdle for making the Monsanto deal pay off remains high.(This column was updated with more details on the settlement total.)This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bayer bets on science in bid to prevent future Roundup lawsuits - legal experts
    Reuters

    Bayer bets on science in bid to prevent future Roundup lawsuits - legal experts

    The company on Wednesday agreed to pay as much as $10.9 billion to end the litigation by U.S. Roundup users who say the herbicide caused them to develop a form of blood cancer. The company decided to make a calculated gamble on the scientific evidence which so far has overwhelmingly supported its claim that glyphosate, the active ingredient in Roundup, is safe for agricultural use. "Bayer is taking a huge risk by doing this and it's a bet that time can show that the science underlying the plaintiffs' claims is bad," said David Noll, a law professor at Rutgers University.

  • Bayer to pay $10.9bn to settle weedkiller cancer claims
    BBC

    Bayer to pay $10.9bn to settle weedkiller cancer claims

    The chemical giant is settling almost 100,000 US lawsuits from users of its popular Roundup herbicide.

  • How Monsanto’s Roundup Herbicide Went From Bayer Asset to Burden
    Bloomberg

    How Monsanto’s Roundup Herbicide Went From Bayer Asset to Burden

    (Bloomberg) -- Bayer AG just agreed to pay as much a $10.9 billion to settle most of the legal headaches inherited with the takeover of Monsanto two years ago. That marriage, which followed a two-year courtship and cost Bayer a quarter of its value, didn’t start out as rocky. Here are key highlights of its history:May 23, 2016, Bayer Pounces on MonsantoAs Werner Baumann took the helm of Bayer, mergers and acquisitions were already reshaping the agricultural-products industry. Feeling the pressure, Bayer approached Monsanto, itself a target after failing to buy a rival. Shares immediately slumped on concern Bayer would be financially stretched by such a giant deal.Sept. 14, 2016, Deal Is ClinchedAfter bumping its offer price, Leverkusen, Germany-based Bayer secured a takeover accord that would turn it into the world’s biggest supplier of seeds and pesticides. The agreement included a $2 billion breakup fee.Dec. 1, 2017, First U.S. NodThe transaction started off well. The Committee on Foreign Investment in the U.S. had taken a long, hard look at China’s acquisition of Switzerland’s Syngenta on national security grounds. By contrast, Bayer sailed through its review unscathed.April 26, 2018, Bayer Forced to Sell Prize AssetsAntitrust regulators insisted that Bayer sell chunks of its existing agro-chemical and seed businesses worth 7.6 billion euros ($8.6 billion) in return for approval. Germany’s BASF SE, which had been waiting in the wings, jumped at the opportunity. Bayer had to part with prime assets, creating a much stronger competitor right in its backyard.May 29, 2018, Last Regulatory Hurdle ClearsU.S. antitrust regulators became the last major authority to approve the deal after the biggest divestment package ever in a U.S. merger enforcement case, paving the way for the takeover to be completed the following week.Aug. 10, 2018, First Legal Cracks AppearJust two months after Bayer clinched the deal, a court in California ruled in favor of a former school groundskeeper who alleged Monsanto’s glyphosate-based weedkillers, including the flagship Roundup brand, had been the cause of his cancer. The first lawsuit to go to trial resulted in $289 million in damages. Baumann and his legal team were aware of a controversy around glyphosate, but banked on a lack of scientific evidence establishing Roundup’s risks. Bayer, like Monsanto before it, insisted the popular herbicide was safe.March 27, 2019, Bayer Loses Second TrialAnother Roundup setback took place when a federal court awarded compensation and punitive damages totaling more than $80 million to a 70-year-old California man who became ill after spraying the herbicide on his property for decades. Bayer again vowed to “vigorously defend” Roundup, but it was an ominous sign, ramping up the pressure to settle.April 26, 2019, Bombshell at Bayer MeetingA bruising moment at Bayer’s annual shareholder meeting, when Baumann and other managers lost a vote of confidence. In what’s usually a formality at such gatherings, 55% of investors expressed their mistrust in the CEO, prompting an immediate supervisory board meeting. Similar rejections have cost German CEOs their jobs, but Baumann soldiered on with the backing of Chairman Werner Wenning.May 13, 2019, Another Trial LossIn the third U.S. trial to make it to court, a Californian couple who had been using Roundup for three decades were awarded $2 billion in damages, bringing Bayer’s shares down more than 40% since the deal was cemented. The company called the ruling “unjustifiable.” It’s appealing all three lost suits. July 30, 2019, Lawsuits SkyrocketWith the number of glyphosate lawsuits swelling to about 18,400 in the U.S., Baumann said he’d consider a “financially reasonable” settlement. Management also engaged in a mediation process ordered by a district judge in California.March 23, 2020, Bayer Stock Hits Rock BottomWith mounting lawsuits, Bayer shares reach 47.50 euros, the lowest level in almost eight years. Estimates for the cost of damages vary, with some pegging it as high as $20 billion. Like Volkswagen AG’s fines for cheating on diesel emission tests in 2017, glyphosate was fast becoming a painful blow to another icon of German industry.June 24, 2020, Settlement AnnouncedThe company agreed to make a payment of as much as $10.9 billion to resolve about three-quarters of the existing Roundup lawsuits and address potential future ones, capping months of efforts to bring its herbicide woes to a close.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bayer settles Roundup cancer lawsuits for up to $10.9 billion
    Reuters

    Bayer settles Roundup cancer lawsuits for up to $10.9 billion

    Bayer AG agreed to settle U.S. lawsuits claiming that its widely-used weedkiller Roundup caused cancer for as much as $10.9 billion after more than a year of talks, resolving litigation that has hit the company's share price. "The Roundup settlement is the right action at the right time for Bayer to bring a long period of uncertainty to an end," Bayer Chief Executive Werner Baumann said.

  • Bayer to pay up to $10.9 billion to settle bulk of Roundup weedkiller cancer lawsuits
    Reuters

    Bayer to pay up to $10.9 billion to settle bulk of Roundup weedkiller cancer lawsuits

    Bayer AG, after more than a year of talks, agreed to pay as much as $10.9 billion to settle close to 100,000 U.S. lawsuits claiming that its widely-used weedkiller Roundup caused cancer, resolving litigation that has pummeled the company's share price. The German drugs and pesticides maker has come to terms with about 75% of the 125,000 filed and unfiled claims overall, it said in a statement on Wednesday of the deal to end legal disputes it inherited with its $63 billion takeover of Monsanto in 2018. "The Roundup settlement is the right action at the right time for Bayer to bring a long period of uncertainty to an end," Bayer Chief Executive Werner Baumann said.

  • Financial Times

    Bayer to pay up to $10.9bn to settle US Roundup lawsuits

    Bayer will pay up to $10.9bn to settle a wave of lawsuits over the potential carcinogenic effects of its herbicide product Roundup, legal actions that have plagued the company since its takeover of US agrichemical rival Monsanto two years ago. As part of the settlement, Bayer will pay up to $9.6bn to resolve outstanding claims, and set aside a further $1.25bn to deal with any future fallout, the company said. Of those sums, up to $5bn will be paid out this year, with a further $5bn paid in 2021, financed largely from the company’s existing free cash flow and the proceeds of the sale of its Animal Health business, which is due to close in the coming months.

  • Bayer nears glyphosate settlement after lengthy talks: sources
    Reuters

    Bayer nears glyphosate settlement after lengthy talks: sources

    After more than a year of talks, however, some details and the overall amount of the settlement have yet to be finalised, one of the sources said on condition of anonymity. German business daily Handelsblatt earlier on Tuesday reported a deal was imminent, with Bayer pledging $8-$10 billion to settle the claims, including a $2 billion buffer for future cases. The drugs and pesticides group, which said in May that talks were progressing, is keen to draw a line under the legal dispute over Roundup and other glyphosate-based weedkillers, which it inherited via its $63 billion takeover of Monsanto in 2018.

  • Bayer close to glyphosate settlement worth $8-10 billion - Handelsblatt
    Reuters

    Bayer close to glyphosate settlement worth $8-10 billion - Handelsblatt

    Bayer AG is close to agreeing a settlement worth $8-10 billion over claims its glyphosate-based Roundup weedkiller causes cancer, German business daily Handelsblatt reported on Tuesday. The company's supervisory board was due to discuss and vote on the settlement, which includes a $2 billion buffer for future claims, in the coming days, paper cited company and negotiating partner sources as saying. A spokesman for Bayer declined to comment on the report.

  • Reuters

    CORRECTED-MORNING BID-PMI cheer?

    After robust improvements in Australia and Japan, the French flash PMI showed business activity unexpectedly rebounded into growth after three months of downturn. Earlier, Australia's composite PMI was also above 50, almost doubling from last month. Japan's composite was at 38, but that's still up 10 points from the May reading.

  • Reuters

    U.S. court blocks California cancer label on Bayer's Roundup weed killer

    A U.S. federal appeals court on Monday blocked California from requiring that Bayer AG label its glyphosate-based weed killer Roundup with a cancer warning, handing the company a victory in its ongoing litigation over the product. In his ruling, U.S. District Judge William Shubb called California's cancer warning misleading and said the state's label is not backed up by regulatory findings. Regulators worldwide have determined glyphosate to be safe with the exception of the World Health Organization's cancer research arm, which determined the herbicide to be a "probable carcinogen" in 2015.

  • Bayer Wins Ruling Blocking California’s Roundup Warning
    Bloomberg

    Bayer Wins Ruling Blocking California’s Roundup Warning

    (Bloomberg) -- Bayer AG’s Roundup won’t require a label in California warning consumers that a chemical in the weed killer is known to cause cancer.A federal judge in Sacramento on Monday ruled for Bayer and blocked the state from requiring that any company selling a glyphosate-based produce place a “clear and reasonable warning” on it.California’s Office of Environmental Health Hazard Assessment listed glyphosate in July 2017 as a chemical known to the state to cause cancer. Bayer’s Monsanto unit has aggressively fought California’s move to add glyphosate to a list created by a voter-approved ballot initiative, Proposition 65, that requires explicit warnings for consumer products containing substances that may cause cancer or birth defects.U.S. District Judge William B. Shubb on Monday made final his 2018 preliminary ruling that requiring Bayer to provide the warning on Roundup is a violation of its free-speech protections. The International Agency for the Research on Cancer, part of the World Health Organization, has found glyphosate is likely to cause cancer but Shubb said others, including the U.S. Environmental Protection Agency, found otherwise.“Notwithstanding the IARC’s determination that glyphosate is a ‘probable carcinogen,’ the statement that glyphosate is ‘known to the state of California to cause cancer’ is misleading,” the judge wrote. “Every regulator of which the court is aware, with the sole exception of the IARC, has found that glyphosate does not cause cancer or that there is insufficient evidence to show that it does.”A coalition of farming groups, including the National Corn Growers Association, National Association of Wheat Grower and Agricultural Retailers Association, joined Bayer in the lawsuit opposing the labeling.“This is a very important ruling for California agriculture and for science,” Bayer said in an emailed statement. The judge concluded “the evidence does not support a cancer-warning requirement for glyphosate-based products, which farmers all over the world depend on to control weeds, practice sustainable farming, and bring their products to market efficiently,” it said.Shubb also found that a warning label would expose Bayer to lawsuits in which it has the burden of showing that in using Roundup, exposure to glyphosate falls below the “no significant risk level” in Prop. 65 enforcement actions.“Facing enforcement actions, or even the possible risk of enforcement actions, are cognizable injuries, even if a business can ultimately prove that its product is not a cancer risk,” Shubb wrote.The case is National Association of Wheat Growers v. Zeise, 17-2401, U.S. District Court, Eastern District of California (Sacramento).(Updates with judge’s ruling in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bayer wins court ruling restricting California's Roundup warning: Bloomberg News
    Reuters

    Bayer wins court ruling restricting California's Roundup warning: Bloomberg News

    A federal judge in Sacramento on Monday granted Bayer's request to block the state from requiring the company or any businesses from providing a "clear and reasonable warning before exposing any individual to glyphosate," the report said https://bloom.bg/2YUijv0. Bayer did not immediately respond to a Reuters request for comment. Bayer, which acquired Roundup manufacturer Monsanto in a $63 billion deal in 2018, to date has faced three juries over claims that Roundup causes cancer.

  • Reuters

    MORNING BID-Green shoots but also job losses and geopolitics

    The views expressed are her own.) As if economic and pandemic troubles were not enough, the world's two most populous countries are engaged in border clashes that have killed at least 20 Indian soldiers and almost certainly some Chinese. Then nuclear-armed North Korea blew up a liaison office with the South and moved military police into the demilitarised zone. U.S. infection rates are at record highs in at least six states, too.

  • Bayer scraps U.S. plans to produce crop chemical blocked by court
    Reuters

    Bayer scraps U.S. plans to produce crop chemical blocked by court

    Bayer AG said on Tuesday it will scrap a nearly $1 billion project to produce the chemical dicamba in the United States, but said the move is unrelated to a federal court decision that blocked sales of weed killers based on the product. The German-based company is moving to save cash as it wages an expensive legal battle to fight allegations that another product, its glyphosate-based weed killer Roundup, causes cancer. Bayer denies the claims.

  • Bayer Initiates a Phase III Study in Heart Failure Patients
    Zacks

    Bayer Initiates a Phase III Study in Heart Failure Patients

    Bayer (BAYRY) initiates a phase III study to evaluate finerenone compared to placebo in more than 5,500 symptomatic heart failure patients with a left ventricular ejection fraction.