(new: course updated, further comments)
FRANKFURT (dpa-AFX) – The euphoria of Bayer shareholders (Bayer) about the glyphosate comparison in the USA did not last long. The price jump from the previous day was followed by a slide on Wednesday. With a recent loss of 7.9 percent to 45.40 euros, the Leverkusen shares even fell back below their 21-day line. On Tuesday they cost almost 50 euros for the first time since 2023 and ultimately increased by a good seven percent.
There was great initial joy after Bayer announced a comprehensive collective settlement. Experts see this as another very important step in getting the glyphosate lawsuits that have been pending for years off the table.
Bayer shares had already risen significantly since October with a price increase of 85 percent by Tuesday evening. However, they still cost significantly less than before the first defeat in a US glyphosate trial in the summer of 2018. At that time they were quoted at a good 93 euros.
Tailwind had provided positive study data for the anticoagulant Asundexian, which raised hopes for a billion-dollar drug. In addition, the prospect of the US Supreme Court making a precedent-setting decision in favor of Bayer for numerous pending glyphosate cases was also supported. This decision by the highest US court is probably the greatest uncertainty factor, even against the background of the settlement. It remains unclear what will happen if the judges do not decide in Bayer’s favor, says expert Charles Pitman-King from Barclays.
The judges must clarify whether federal law on warning labels when selling weed killers – as the company argues – takes precedence over state law. Essentially, it’s about whether there was sufficient warning about the risks of using the weed killer.
That’s why the Supreme Court’s decision is so important, says analyst Richard Vosser from JPMorgan. A favorable outcome for Bayer would then affect plaintiffs who based their claims on the lack of warnings and did not agree to the proposed collective settlement. The former is estimated to be the basis for around 80 percent of all cases.
There is also the possibility that many plaintiffs will decide against the collective settlement sought by Bayer, Vosser continued. If there were too many, the entire agreement would collapse, according to Bayer.
DZ Bank took the latest development as an opportunity to downgrade the securities by two steps from “buy” to “sell”. From the point of view of expert Peter Spengler, the glyphosate comparison in the USA is a “costly-bought step towards greater planning security”. It is a long-term, 21-year compensation program that takes both current and future plaintiffs into account in a uniform framework./edh/ag/mis/he
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