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BAYRY Stock Surges 17% After Supreme Court Roundup Ruling

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Key Takeaways

  • Bayer surged 17% after a Supreme Court ruling on Roundup warning claims and EPA authority.
  • BAYRY expects the ruling to dismiss most current warning-based claims and limit future lawsuits.
  • Bayer's turnaround has been supported by growth from Nubeqa and Kerendia despite pressure on key drugs.

Shares of Bayer AG (BAYRY - Free Report) surged 17% on June 25 after a Supreme Court ruling in the ongoing Roundup litigation.

The U.S. Supreme Court on Thursday issued a landmark 7-2 ruling in the Durnell Roundup case, confirming that the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) expressly preempts state-law failure-to-warn claims when the U.S. Environmental Protection Agency (EPA) has made a definitive safety determination.

The latest decision by the Supreme Court, which garnered broad support across the Court's ideological spectrum, is expected to significantly curb Roundup-related litigation costs.

The ruling reinforces the EPA's authority over pesticide labeling and safety determinations, affirming that companies complying with federally approved labeling requirements cannot be held liable under a patchwork of state tort laws.

More on Bayer’s Roundup Litigation

Bayer acquired Roundup weedkiller through Monsanto’s buyout in 2018. However, several lawsuits have been filed by people alleging that Monsanto’s herbicide caused them to develop cancer. Glyphosate is the active ingredient contained in several Monsanto herbicides, including Roundup branded products.

Numerous lawsuits have been filed in the United States by plaintiffs alleging exposure to glyphosate-based products produced by Monsanto, a subsidiary of Bayer. It has also been alleged that people were not made aware of the cancer risks by either Monsanto or Bayer.

Bayer has incurred significant litigation costs due to these lawsuits.

In February 2026, Monsanto and class counsel announced a proposed nationwide class settlement, aimed at resolving existing and future U.S. Roundup lawsuits alleging non-Hodgkin lymphoma through a long-term compensation program.

The company stated that the class settlement and Supreme Court strategies were independently necessary and mutually reinforcing elements of the company’s multi-pronged containment strategy.

Bayer expects that the holding in Durnell case should result in the dismissal of current warnings-based claims and foreclose future claims based on state-failure-to-warn theories, which make up the vast majority of claims in the litigation to date.

Hence, with the class settlement having received preliminary approval and the Supreme Court's favorable ruling, Monsanto expects to significantly reduce its litigation exposure.

Bayer further stated that the EPA has consistently concluded that glyphosate is not likely to be carcinogenic to humans. The company added that major independent regulatory agencies worldwide, including the European Food Safety Authority and regulators across Asia and Latin America, have reached the same conclusion following their own safety assessments of glyphosate.

Last week, Judge Henry E. Autrey of the U.S. District Court for the Eastern District of Missouri issued a ruling remanding the class settlement case, King v Monsanto, back to the Missouri State Court.

This decision returns jurisdiction over the class settlement to the Missouri Circuit Court, where the vast majority of pending claims in the Roundup litigation have been filed.

Bayer’s Recent Performance Is Impressive

Shares of Bayer have gained 21.6% year to date compared with the industry’s growth of 5.3%.

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Bayer’s recent turnaround has been phenomenal and it is now looking to expand its diverse portfolio.

Bayer’s portfolio is currently anchored by five major assets — asundexian, Nubeqa (prostate cancer), Kerendia (kidney disease), Beyonttra and Lynkuet (a dual NK1/NK3 antagonist approved for menopause-related vasomotor symptoms).

The strong performance of drugs like Nubeqa and Kerendia has enabled the company to combat the decline in sales of oral anticoagulant Xarelto, which is co-developed with Johnson & Johnson (JNJ - Free Report) .

Xarelto is marketed by Johnson & Johnson in the United States. Bayer earns license revenues from JNJ for Xarelto sales in the United States.

Another key drug, Eylea, continues to face pressure from generics. The introduction of Eylea 8 mg, with its extended dosing intervals, has partially offset the decline and supported overall performance.

Please note that Bayer co-develops Eylea with Regeneron (REGN - Free Report) , which records net product sales of Eylea in the United States. BAYRY records net product sales of Eylea outside the country. REGN records its share of profits/losses in connection with the sales of Eylea outside the United States.

BAYRY’s Zacks Rank

Bayer currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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