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Bayer Sets Up Special Committee to Tackle Glyphosate Lawsuits
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Bayer AG (BAYRY - Free Report) announced its decision to create a special litigation committee of the supervisory board to help resolve a multi-billion dollar glyphosate litigation issue. The company also said that it has hired high-profile U.S. lawyer John H. Beisner to fight its glyphosate litigationsand advise the supervisory board.
Meanwhile, activist investor, Elliott Advisors (UK) Limited, disclosed a 1.1-billion-euro ($1.3 billion) stake in Bayer.
The company is facing more than 13,000 lawsuits, claiming its glyphosate-based products, including Roundup weedkillers, manufactured by its subsidiary Monsanto to cause cancer. Bayer has already lost threesuits in U.S. courts. Year to date, the company’s share price has declined 3% against the industry’s growth of 5.3%, mainly due the ongoing litigation issues.
Elliott believes the creation of the supervisory board and the hiring of Beisner will provide Bayer relevant litigation expertise and resolve itsongoing glyphosate litigation. The stock rose more than 5% following the news.
Bayer has been stating that glyphosate-based products are completely safe to use and do not cause cancer. The company has stated in the past that decades of scientific studies have shown the chemical to be safe for human use.
However, there have been debates by environmentalists, regulators, researchers and lawyers about whether Roundup causes cancer.
The newly-established supervisory board committee will closely look into these issues, consult with management and make recommendations on the litigation strategy. Both management and the supervisory board have also hired Ken Feinberg as mediator. Feinberg has an outstanding track record as mediator in some of the most complex settlements. The company has taken up these measures to mitigate the litigation uncertainty’s negative impact on its stock price movement.
Novartis’ earnings per share estimates increased from $4.98 to $5.01 for 2019 and from $5.48 to $5.56 for 2020 over the past 60 days. Share price of the company has increased 23.6% year to date.
Pfizer’s earnings per share estimates increased from $2.86 to $2.88 for 2019 over the past 60 days. Share price of the company has increased 0.2% year to date.
Merck’s earnings per share estimates have moved up from $4.65 to $4.74 for 2019 and from $5.19 to $5.28 for 2020 in the past 60 days. Share price of the company has increased 10.8% year to date.
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Bayer Sets Up Special Committee to Tackle Glyphosate Lawsuits
Bayer AG (BAYRY - Free Report) announced its decision to create a special litigation committee of the supervisory board to help resolve a multi-billion dollar glyphosate litigation issue. The company also said that it has hired high-profile U.S. lawyer John H. Beisner to fight its glyphosate litigationsand advise the supervisory board.
Meanwhile, activist investor, Elliott Advisors (UK) Limited, disclosed a 1.1-billion-euro ($1.3 billion) stake in Bayer.
The company is facing more than 13,000 lawsuits, claiming its glyphosate-based products, including Roundup weedkillers, manufactured by its subsidiary Monsanto to cause cancer. Bayer has already lost threesuits in U.S. courts. Year to date, the company’s share price has declined 3% against the industry’s growth of 5.3%, mainly due the ongoing litigation issues.
Elliott believes the creation of the supervisory board and the hiring of Beisner will provide Bayer relevant litigation expertise and resolve itsongoing glyphosate litigation. The stock rose more than 5% following the news.
Bayer has been stating that glyphosate-based products are completely safe to use and do not cause cancer. The company has stated in the past that decades of scientific studies have shown the chemical to be safe for human use.
However, there have been debates by environmentalists, regulators, researchers and lawyers about whether Roundup causes cancer.
The newly-established supervisory board committee will closely look into these issues, consult with management and make recommendations on the litigation strategy. Both management and the supervisory board have also hired Ken Feinberg as mediator. Feinberg has an outstanding track record as mediator in some of the most complex settlements. The company has taken up these measures to mitigate the litigation uncertainty’s negative impact on its stock price movement.
Bayer Aktiengesellschaft Price
Bayer Aktiengesellschaft price | Bayer Aktiengesellschaft Quote
Zacks Rank and Stocks to Consider
Bayer currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the large-cap pharmaceutical sector include Novartis AG (NVS - Free Report) , Pfizer (PFE - Free Report) and Merck and Co., Inc. (MRK - Free Report) . All of them carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Novartis’ earnings per share estimates increased from $4.98 to $5.01 for 2019 and from $5.48 to $5.56 for 2020 over the past 60 days. Share price of the company has increased 23.6% year to date.
Pfizer’s earnings per share estimates increased from $2.86 to $2.88 for 2019 over the past 60 days. Share price of the company has increased 0.2% year to date.
Merck’s earnings per share estimates have moved up from $4.65 to $4.74 for 2019 and from $5.19 to $5.28 for 2020 in the past 60 days. Share price of the company has increased 10.8% year to date.
Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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