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Bayer Down on Verdict to Pay $2.1B to Plaintiff in Roundup Litigation
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Shares of pharma conglomerate Bayer (BAYRY - Free Report) were down 7.1% on March 24, following a setback in the ongoing Roundup Litigation.
Bayer reported that, on March 21, the jury at the Barnes Roundup trial in the State Court of Cobb County, Georgia, reached a verdict in favor of the plaintiff.
Bayer has been ordered by the jury to pay $2.1 billion to the plaintiff ($2 billion in punitive damages and $65 million in compensatory damages).
However, the company disagreed with the jury’s verdict.
In the past year, shares of Bayer have lost 17.7% compared with the industry’s decline of 2.8%.
Image Source: Zacks Investment Research
More on BAYRY’s Roundup Litigation
Glyphosate is the active ingredient in a number of Monsanto’s herbicides, including Roundup branded products. Bayer acquired Roundup weedkiller through Monsanto’s buyout in 2018. However, several lawsuits have been filed by people for the same, alleging that Monsanto’s herbicide caused them to develop non-Hodgkin lymphoma (NHL) or related cancers.
It has also been alleged by plaintiffs that the glyphosate-based herbicide products are defective and that Monsanto knew, or should have known, of the risks allegedly associated with such products and failed to adequately warn its users.
The ongoing glyphosate litigation in the United States has adversely impacted Bayer’s cash position due to high legal costs. Nonetheless, the company plans to appeal the latest verdict by the Georgia court and stated that it has secured favorable outcomes in 17 of the last 25 trials.
Bayer had earlier argued that leading health regulators worldwide have repeatedly concluded that its glyphosate products can be used safely and that glyphosate is not carcinogenic.
According to the company, in July 2024, a judge in the Federal Court of Australia (with the aid of a neutral, court-appointed scientific expert and following a scientific conclave process) found in a detailed 322-page opinion that the weight of scientific evidence does not support a link between glyphosate and NHL.
As of Dec. 31, 2024, Bayer’s provision for the glyphosate litigation totaled $5.9 billion.
The company also plans to file a petition for review with the U.S. Supreme Court in the ongoing glyphosate litigation.
BAYRY’s Efforts to Combat Challenges
Bayer plans to pay out only the legally required minimum dividend in 2025, while also looking to reduce its debt. 2024 was a tough year for the company due to strong headwinds in the Crop Science business. The uncertainty caused by ongoing Roundup litigation is also a major hangover on the stock. BAYRY had earlier slashed its dividends to conserve cash, as increasing Roundup litigation charges had adversely impacted the bottom line.
2025 could be another challenging year for this German pharma giant as it expects earnings to decline and sales to grow modestly.
The company ended 2024 with a net financial debt of €32.6 billion.
Nonetheless, sales growth was encouraging in the Pharmaceutical division. New products, Nubeqa and Kerendia, retained their impressive momentum and offset the negative impact of a decline in Xarelto sales. The company is working to expand the labels of its key drugs, Nubeqa and Kerendia, which should boost growth.
Successful development of additional drugs is imperative for Bayer amid multiple challenges. BAYRY expects to launch two new drugs — elinzanetant, a hormone-free treatment for menopause symptoms, and acoramidis, a drug for the treatment of a certain type of heart disease. The failure of a late-stage study on asundexian was a major setback for the company.
In the past 30 days, NVO’s EPS estimate for 2025 has increased to $3.93 from $3.84. During the same timeframe, the figure for 2026 has increased to $4.82 from $4.66.
Gilead Sciences
In the past 30 days, Gilead Sciences’ EPS estimate for 2025 has increased from $7.80 to $7.87. During the same timeframe, the figure for 2026 has increased to $8.27 from $8.11.
GILD’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.47%.
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Bayer Down on Verdict to Pay $2.1B to Plaintiff in Roundup Litigation
Shares of pharma conglomerate Bayer (BAYRY - Free Report) were down 7.1% on March 24, following a setback in the ongoing Roundup Litigation.
Bayer reported that, on March 21, the jury at the Barnes Roundup trial in the State Court of Cobb County, Georgia, reached a verdict in favor of the plaintiff.
Bayer has been ordered by the jury to pay $2.1 billion to the plaintiff ($2 billion in punitive damages and $65 million in compensatory damages).
However, the company disagreed with the jury’s verdict.
In the past year, shares of Bayer have lost 17.7% compared with the industry’s decline of 2.8%.
Image Source: Zacks Investment Research
More on BAYRY’s Roundup Litigation
Glyphosate is the active ingredient in a number of Monsanto’s herbicides, including Roundup branded products. Bayer acquired Roundup weedkiller through Monsanto’s buyout in 2018. However, several lawsuits have been filed by people for the same, alleging that Monsanto’s herbicide caused them to develop non-Hodgkin lymphoma (NHL) or related cancers.
It has also been alleged by plaintiffs that the glyphosate-based herbicide products are defective and that Monsanto knew, or should have known, of the risks allegedly associated with such products and failed to adequately warn its users.
The ongoing glyphosate litigation in the United States has adversely impacted Bayer’s cash position due to high legal costs.
Nonetheless, the company plans to appeal the latest verdict by the Georgia court and stated that it has secured favorable outcomes in 17 of the last 25 trials.
Bayer had earlier argued that leading health regulators worldwide have repeatedly concluded that its glyphosate products can be used safely and that glyphosate is not carcinogenic.
According to the company, in July 2024, a judge in the Federal Court of Australia (with the aid of a neutral, court-appointed scientific expert and following a scientific conclave process) found in a detailed 322-page opinion that the weight of scientific evidence does not support a link between glyphosate and NHL.
As of Dec. 31, 2024, Bayer’s provision for the glyphosate litigation totaled $5.9 billion.
The company also plans to file a petition for review with the U.S. Supreme Court in the ongoing glyphosate litigation.
BAYRY’s Efforts to Combat Challenges
Bayer plans to pay out only the legally required minimum dividend in 2025, while also looking to reduce its debt. 2024 was a tough year for the company due to strong headwinds in the Crop Science business. The uncertainty caused by ongoing Roundup litigation is also a major hangover on the stock. BAYRY had earlier slashed its dividends to conserve cash, as increasing Roundup litigation charges had adversely impacted the bottom line.
2025 could be another challenging year for this German pharma giant as it expects earnings to decline and sales to grow modestly.
The company ended 2024 with a net financial debt of €32.6 billion.
Nonetheless, sales growth was encouraging in the Pharmaceutical division. New products, Nubeqa and Kerendia, retained their impressive momentum and offset the negative impact of a decline in Xarelto sales. The company is working to expand the labels of its key drugs, Nubeqa and Kerendia, which should boost growth.
Successful development of additional drugs is imperative for Bayer amid multiple challenges. BAYRY expects to launch two new drugs — elinzanetant, a hormone-free treatment for menopause symptoms, and acoramidis, a drug for the treatment of a certain type of heart disease. The failure of a late-stage study on asundexian was a major setback for the company.
Bayer’s Zacks Rank
BAYRY currently carries a Zacks Rank #2 (Buy). A couple of other top-ranked stocks in the pharma/biotech sector are Novo Nordisk (NVO - Free Report) and Gilead Sciences (GILD - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NVO
In the past 30 days, NVO’s EPS estimate for 2025 has increased to $3.93 from $3.84. During the same timeframe, the figure for 2026 has increased to $4.82 from $4.66.
Gilead Sciences
In the past 30 days, Gilead Sciences’ EPS estimate for 2025 has increased from $7.80 to $7.87. During the same timeframe, the figure for 2026 has increased to $8.27 from $8.11.
GILD’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.47%.