|Bid||59.63 x 28400|
|Ask||59.64 x 2100|
|Day's Range||59.03 - 60.03|
|52 Week Range||52.02 - 97.03|
|Beta (3Y Monthly)||1.19|
|PE Ratio (TTM)||58.67|
|Earnings Date||Jul 30, 2019|
|Forward Dividend & Yield||2.80 (4.77%)|
|1y Target Est||120.99|
Jul.16 -- Bayer has won a ruling, slashing a jury verdict to $25M from over $80M over claims its Roundup weed killer causes cancer. The same judge who reduced the punitive damages also rejected the company’s request for a new trial. Bayer had vowed to keep defending its popular weed killer. Bloomberg’s Tim Loh reports on “Bloomberg Markets: European Open.”
(Bloomberg) -- Bayer AG is poised for a reduction of more than 90% in the $2 billion verdict it was hit with in the most recent trial over its Roundup weedkiller.After a jury concluded the company’s herbicide caused cancer in a husband and wife, a California state judge said in a tentative ruling late Thursday that she won’t throw out the verdict entirely.But the Oakland judge said she’s inclined to whack the couple’s 10-figure punitive damage awards because they’re beyond the limits allowed by legal precedent. Under her ruling, total damages could end up being in the range of $20 million to $100 million, according to a lawyer for the couple, Brent Wisner. That’s in line with what experts predicted. Bayer shares rose almost 1.5% in Frankfurt trading.The German health-care and agricultural giant made arguments at a hearing Friday to try to convince the judge that it deserves a new trial. She didn’t issue any final rulings.Even with the awards slashed, Bayer is still in trouble, said Anna Pavlik, senior counsel for special situations at United First Partners LLC in New York. More than 13,000 plaintiffs in the U.S. have sued Bayer, claiming Roundup causes cancer. The weedkiller was first marketed in the 1970s by St. Louis-based Monsanto Co., which was acquired by Bayer last year for $63 billion.“As long as the per-plaintiff verdicts remain in the millions, the reductions in punitive damages still do not help Bayer when it is thinking about its ultimate litigation and settlement strategy,” Pavlik said before the tentative ruling was issued. “Without any wins under its belt, Bayer is still facing enormous per-plaintiff payouts.”The Oakland verdict was the third straight loss for Bayer on Roundup since last summer. Meanwhile, dozens of new complaints are filed across the U.S. every month.‘Unnecessarily Theatrical’Bayer argued in a court filing that it deserves a new trial in the Oakland case due to misconduct by lawyers for the couple, Alva and Alberta Pilliod, that turned the courtroom “unnecessarily theatrical.” To scare jurors, a lead trial lawyer wore gloves to handle a Roundup bottle, Bayer says, adding the panel remained confused even after the judge pointed out there was only water inside.The lawyers also participated in photo opportunities outside the jury room with celebrities Neil Young and Daryl Hannah, who are anti-Monsanto activists, according to the filing.California Superior Court Judge Winifred Smith rejected Bayer’s claims in her tentative ruling, saying that while the plaintiffs’ counsel occasionally overstated matters and violated her orders, that didn’t create prejudice against the company.The $2 billion jury award was the largest in the U.S. this year and the eighth-largest ever in a product-defect claim, according to data compiled by Bloomberg. Analysts’ estimates for the costs to settle all the lawsuits Bayer faces in the U.S. range from about $2.5 billion to $20 billion.What Bloomberg Intelligence Says:Bayer could be liable for hundreds of billions of dollars if verdicts delivered in August, March and May are repeated, given a reported 13,400 consumers have filed similar claims, though the company will likely pay less. Settlement value of cases could average $500,000 apiece, based on comparable mass-tort settlements, meaning the total payout may be around $6-7 billion. The number of cases has more than doubled since 2Q18.Holly Froum, consumer litigation analystClick here to view the pieceThe U.S. Supreme Court has ruled the Constitution requires that punitive damages be no higher than a single-digit multiple of damages awarded to compensate plaintiffs for pain, suffering and economic losses.For the Pilliods that total was $55 million. Bayer argues even that was excessive -- and the judge seemed to agree, saying the pain and suffering awards for both wife and husband weren’t fully supported by the evidence at trial.Bayer said in an emailed statement that the proposed damages reduction in Thursday’s order is a “step in the right direction.”“Bayer has many strong arguments to challenge the verdicts and damages in these cases that we will raise on appeal,” company spokesman Chris Loder said in an email before the tentative ruling. “Mass torts require a long, multistep process, and there is not a single verdict that is final at this time. We will fully exercise our rights to defend our products through all stages of this litigation.”Amy Alderfer, a lawyer who represents companies in product liability litigation, predicted Bayer will win a significant cut in the Pilliods’ damages. But she said the company has little chance of getting the judge to throw out the verdict because that’s tantamount to admitting an error.Showing Resolve“It’s a hard sell to convince a trial court judge to reverse herself,” Alderfer said.Smith said in her ruling that Bayer is entitled to a new trial if the Pilliods refuse to accept the smaller damages award. After the first Roundup trial last summer, a school groundskeeper who was awarded $289 million in damages accepted a judge’s reduction to $78.6 million rather than allow Bayer a new trial.Michael Miller, a lawyer for the Pilliods, declined to comment on any potential cuts to the damage awards.Alderfer said there’s good reason for Bayer to keep fighting the Roundup lawsuits. Bayer’s attempts to undo its early defeats are an important show of resolve, she said.“You continue to telegraph to plaintiffs and their lawyers that you’re disputing this, and you’re not going to just accept these verdicts,” the attorney said. “It shows you’re still willing to fight. Showing any position of strength you can leads you to a better settlement position.”Why Bayer Shares Are Facing Such Trials Over Roundup: QuickTakePavlik said a ruling reducing damages “marginally helps” narrow the gap in settlement negotiations between what plaintiffs’ lawyers demand and what Bayer is willing to pay per plaintiff. What the company really needs is to overturn the verdicts or to win its next trial, she said.Even though Bayer already has persuaded judges to knock down jury awards in the other two cases it lost, it’s a “moral win” for plaintiffs that jurors were convinced by the evidence against Bayer, Pavlik said.“The juries believe Monsanto did something wrong,” she said. “That gives the plaintiffs an upper hand. Basically the juries are eating out of the plaintiffs’ lawyers’ hands, saying ‘You want two billion? We’ll give you two billion -- we’re that upset.’”The Oakland case is Pilliod v. Monsanto Co., RG17862702, California Superior Court, County of Alameda (Oakland).(Updates with third straight loss for Bayer in seventh paragraph. An earlier version of the story corrected the estimated range of damages under the tentative ruling.)\--With assistance from John Lauerman.To contact the reporter on this story: Joel Rosenblatt in San Francisco at email@example.comTo contact the editors responsible for this story: David Glovin at firstname.lastname@example.org, Peter Blumberg, Joe SchneiderFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Agricultural chemical maker Syngenta on Friday reported a 34% fall in first-half net income, showing the impact of U.S. trade disputes with China and Mexico as well as bad weather in some of its markets. Basel-based Syngenta was bought in 2017 by state-owned ChemChina [CNNCC.UL] for $43 billion, which aims to capitalise on the group's agricultural technology. Syngenta's first-half sales fell 7% to $6.8 billion, while net income tumbled 34% to $798 million, in part due to the bad weather and global issues.
Germany's Bayer AG welcomed on Friday a call by a U.S. judge to cut a $2 billion damages award to a Californian couple by a jury which found that its glyphosate-based weed killer had caused their cancer. The company had in June asked Judge Winifred Y. Smith, of California's Alameda County Superior Court, to overrule the jury verdict that its Roundup weed killer caused Alva and Alberta Pilliod's non-Hodgkin's Lymphoma (NHL), arguing it was not supported by the evidence. Judge Smith, in a 15-page opinion, said the punitive damages that make up most of the award should be reduced.
Germany's Bayer AG welcomed on Friday a call by a U.S. judge to cut a $2 billion damages award to a Californian couple by a jury which found that its glyphosate-based weed killer had caused their cancer. The company had in June asked Judge Winifred Y. Smith, of California's Alameda County Superior Court, to overrule the jury verdict that its Roundup weed killer caused Alva and Alberta Pilliod's non-Hodgkin's Lymphoma (NHL), arguing it was not supported by the evidence.
Bayer shares topped the German market Tuesday following a Federal Court ruling in California that slashed the amount of damages the chemicals group will need to pay after a jury found its Roundup weedkiller cause a man to contract non-Hodgkin's lymphoma.
A federal judge on Monday slashed a damages award Bayer AG owed a California man who blamed Roundup weed killer for his cancer, to $25.27 million from $80.27 million, while rejecting the company's bid for a new trial. U.S. District Judge Vince Chhabria in San Francisco said evidence against the former Monsanto Co, which Bayer bought last year, supported the $5.27 million in compensatory damages that a jury awarded Edwin Hardeman. Chhabria nonetheless reduced punitive damages to $20 million from $75 million, saying that while Monsanto "deserves to be punished" the higher award was "constitutionally impermissible" because it was nearly 15 times the compensatory damages award.
U.S. District Judge Vince Chhabria in San Francisco said evidence against the former Monsanto Co, which Bayer bought last year, supported the $5.27 million in compensatory damages that a jury awarded Edwin Hardeman. Chhabria nonetheless reduced punitive damages to $20 million from $75 million, saying that while Monsanto "deserves to be punished" the higher award was "constitutionally impermissible" because it was nearly 15 times the compensatory damages award.
A US federal judge on Monday slashed damages owed by Bayer in a case related to claims that exposure to weed killer Roundup causes cancer. US district judge Vince Chhabria in San Francisco reduced the award to $25.3m from the jury’s original verdict of $80.3m. Mr Chhabria also rejected Bayer’s request for a new trial.
(Bloomberg) -- German Agriculture Minister Julia Kloeckner said glyphosate herbicide probably won’t have enough support to gain re-authorization for use in the European Union after 2022.Germany shouldn’t follow Austria, whose parliament recently voted to ban products containing glyphosate, Kloeckner said in an interview with Der Tagesspiegel, pointing out that the EU’s clearance of the chemical lasts through 2022. German politicians are instead working on plans to find safe alternatives to it, said Kloeckner, a Christian Democrat.Glyphosate is a polarizing topic in Germany. Bayer AG acquired Roundup -- the world’s best-selling weedkiller, whose active ingredient is glyphosate -- in its $63 billion takeover of Monsanto Co. last year. Since then, the German drugs and chemicals giant has lost three trials in the U.S. from people claiming Roundup caused their cancer -- and its shares have plunged almost 40%.EU laws call for companies wishing to maintain approval for glyphosate to submit an application by Dec. 15, three years before the current authorization expires. Agencies in France, Hungary, the Netherlands and Sweden are charged with performing the initial assessment of applications.The International Agency for Research on Cancer, an arm of the World Health Organization headquartered in Lyon, labeled glyphosate a probable carcinogen in 2015, a claim Bayer rejects. The company says that other studies and regulators have shown the chemical is safe.To contact the reporter on this story: Tim Loh in Munich at email@example.comTo contact the editors responsible for this story: Eric Pfanner at firstname.lastname@example.org, James Amott, Cecile GutscherFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Brazilian cotton producers in the state of Mato Grosso on Thursday sued Bayer AG , seeking to cancel the chemical company's patent protection for its Bollgard II RR Flex genetically modified cotton seed, according to a statement sent to Reuters. The farmers, hoping to regain $151 million in royalty payments, claim the genetically modified seed does not constitute a de facto technological innovation, according to the statement issued by the Mato Grosso Cotton Producers Association (AMPA). The lawsuit also names Brazil's national patents office as a defendant.
Investors love the companies that keep pets healthy. Now a merger between two of the five largest players could mean more gains for shareholders.
FRANKFURT/LONDON (Reuters) - Bayer has approached U.S. drug firm Elanco Animal Health to discuss a possible combination of their pet-health businesses to create an industry giant, three sources familiar with the matter told Reuters. The two companies are working with banks to ensure any merger would secure regulatory approval, the sources said, speaking on condition of anonymity. Bayer has delayed the launch of an auction to private equity funds to clinch a bilateral deal with Elanco, the fourth-largest player in the animal health industry globally, the sources said.
Singapore's Temasek Holdings posted the smallest rise in its portfolio in three years as key bank stock holdings declined in value, and the state investor said it was increasingly focusing new investments in North America, Europe and on unlisted firms. "Trade and technology tensions are already disrupting supply chains, business confidence is being tested and capital investments have slowed," Png Chin Yee, a senior managing director at Temasek, told a news conference on Tuesday. Temasek's 1.6% portfolio gain for the year to March 31, 2019 came after a 12% increase a year ago and took its net portfolio value to a record S$313 billion ($230 billion).
(Bloomberg) -- Temasek Holdings Pte may report its first decline in net portfolio value since 2016 as global trade uncertainties and volatile equity markets take their toll.Singapore’s state investor, which had S$308 billion ($226 billion) in assets as of March 2018, will release its 2019 annual report Tuesday. CIMB Private Banking economist Song Seng Wun, who has been covering Temasek for over a decade, predicts the figure may dip to S$300 billion.Investors globally are facing a tough environment as the trade war between China and the U.S. clouds the market outlook and other issues like Brexit dent returns. Singapore’s sovereign wealth fund GIC Pte last week said overhyped valuations in developed markets were also a concern.While a decline in that vicinity would be within the range envisaged by Temasek in its 2018 annual report, it would only represent the fund’s third fall in a decade (net portfolio value dipped in 2016 and again in 2009 during the global financial crisis).Temasek struck a 3 billion euro ($3.4 billion) deal to buy a substantial stake in Bayer AG in April 2018, only to see the German healthcare and agricultural giant lose more than one-third of its value amid a flurry of lawsuits relating to claims a weedkiller brand it acquired when it took over Monsanto Co. causes cancer.The Singapore investor also holds a large interest in U.S. telecoms provider CenturyLink Inc., whose shares slumped 27% in the 12 months through March 31 (Temasek’s financial year-end) after a string of setbacks including a customer lawsuit alleging fraud.Tougher YearIt’s also a shareholder in Industrial & Commercial Bank of China Ltd., down 14.6% over the period, and DBS Group Holdings Ltd., down 8.3%.“For everybody, it’s been a far tougher year,” said CIMB’s Song. “When you’re so large you tend to have a presence in large, representative companies across many industries. When it works, it works it works very well. But as we’ve seen with the Monsanto case, when when it doesn’t, it can flip against you.”Song said he expects Temasek to have an enlarged focus on backing firms that place importance on sustainability amid the rise of environmentally conscious consumers. Temasek’s direct equity investments peaked at $6.13 billion in the second quarter of last year, based on estimates by the Sovereign Wealth Center in London, the Business Times reported last month.Rohit Sipahimalani, Temasek’s co-head of investment, said in May the fund was seeking to make investments related to six themes: longer life spans, rising affluence in emerging markets, sustainable living, smarter systems, the sharing economy and the connected world.Sipahimalani also said Temasek was paying more attention to tech companies and getting in before their initial public offerings because “if you’re not in there early, it’s difficult to catch the wave.”To contact the reporter on this story: David Ramli in Singapore at email@example.comTo contact the editors responsible for this story: Katrina Nicholas at firstname.lastname@example.org, Sam MamudiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A juror who was part of a panel that delivered an $80 million award against Bayer AG after finding that its glyphosate-based weed killer Roundup caused a man's cancer has urged the presiding judge to uphold the decision. A letter from the juror written on July 4 was posted to the court docket on Monday as part of legal filings by Bayer. The company accused the juror of bias and called on the judge to disregard the letter in his decision making.
Bayer will apply for approval to make its blockbuster blood thinner Xarelto available for treating children, the German company said on Monday, after a study showed strong efficacy and safety in children with thromboembolism. Bayer added that it would submit an application to the European Medicines Agency for an extension of the Xarelto marketing authorisation. Xarelto is Bayer's best-selling drug and contributed 3.6 billion euros ($4.04 billion) in revenue to the group's pharmaceutical business last year.
(Bloomberg) -- Bayer AG Chief Executive Officer Werner Baumann sought to reassure German investors about the prospects of settling litigation over the company’s Roundup weedkiller, an effort to regain their confidence after an unprecedented rebuke at the company’s shareholder meeting in April.The embattled CEO held a series of meetings in Frankfurt this week with key shareholders, according to people familiar with the situation. The outreach comes as the company battles thousands of lawsuits from people who say the weedkiller caused their cancer. Bloomberg Intelligence analysts have said the cases could result in a settlement of as much as $10 billion.Baumann told investors that Ken Feinberg, the high-profile mediator appointed to lead settlement talks for some of the cases, met with both parties and wouldn’t have agreed to take the job if he didn’t think he could broker a deal, according to one of the people, who asked not to be named because the investor discussions were private.A Bayer representative declined to comment.Bayer is trying to win over shareholders concerned that it mishandled the fallout over Roundup after acquiring the herbicide last year in the $63 billion purchase of Monsanto Co. The German company rejects claims that the weedkiller causes cancer and has vowed to keep fighting after losing three trials since the Monsanto deal closed last summer.The meetings came at an auspicious time. A federal judge said he’ll probably reduce -- but not throw out entirely -- an $80 million jury verdict against Bayer in the second case to go to trial over claims that Roundup causes cancer.Damage AwardU.S. District Judge Vince Chhabria said at a hearing Tuesday in San Francisco that part of the damages awarded to a California man for his pain and suffering may have been miscalculated and that the $75 million portion of the verdict intended to punish the company may be too high.Bayer is working to rehabilitate its image as it battles mounting suspicion over the safety of Roundup’s active ingredient, glyphosate. Austria’s parliament earlier this week voted to ban herbicides containing glyphosate, a first in the European Union.Questioned by a shareholder about the Austrian decision, Baumann largely dismissed it, saying that farmers will have a difficult time getting by without glyphosate, one of the people said.The meetings follow a vote against Baumann by shareholders at the company’s annual general meeting in April, where a majority of investors opposed absolving the CEO and other managers of responsibility for their actions in the Monsanto takeover.To contact the reporters on this story: Naomi Kresge in Berlin at email@example.com;Eyk Henning in Frankfurt at firstname.lastname@example.orgTo contact the editors responsible for this story: Eric Pfanner at email@example.com, Marthe FourcadeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Sydney's city council said on Friday it was reviewing its weed management, which included the use of Bayer AG's Roundup, after other councils in Australia began cutting ties with the product amid concerns about possible links to cancer. The council, which covers the city's business centre, was "reviewing (its) weed management methods and investigating other technologies", a spokeswoman told Reuters in an email, a day after a strike by workers at a nearby council pressured it into trialling an alternative weedkiller. The City of Sydney council currently used Roundup "as a last resort ... when non-pesticide methods such as hand-weeding and mulching have been ineffective", and began testing alternative products in late 2018, the spokeswoman added.
A federal judge will reconsider a jury’s $80 million damage award to a cancer victim who used Monsanto’s Roundup weed-killer.
Bayer AG ADRs were higher Wednesday after U.S. District Judge Vince Chhabria said he would reduce a jury's $75 million punitive-damages award against the company in a case involving the Roundup weed killer. The plaintiff in the case, Edwin Hardeman, had said that Monsanto's Roundup weed killer caused his cancer. Bayer purchased Monsanto for $63 billion in 2018.