Bayer Insists on Continued Use of Glyphosate Amidst Repeat Controversies
Investors are keeping a close eye on Bayer as the pharmaceutical and agricultural company grapples with ongoing legal challenges surrounding its glyphosate-based product, Roundup. The latest development, the Durnell case, has caused uncertainty for market participants at the start of the week.
The U.S. Supreme Court's recent decision to seek the U.S. government's opinion in the glyphosate dispute has delayed a swift resolution to the legal dispute at the federal level. According to Jefferies, this delay has potentially postponed a potentially favorable outcome for Bayer.
The Supreme Court's decision could potentially limit future Roundup litigation by affirming federal preemption or allow claims to continue if the Court sides with plaintiffs. This legal conflict centers on whether Bayer can be held liable under state law for following federal EPA labeling decisions that do not require cancer warnings.
The ongoing litigation has already cost Bayer billions in settlement payments and legal fees, straining its finances. The company's ability to innovate and market products containing glyphosate or related chemicals depends heavily on regulatory and legal clarity. If courts uphold state claims despite federal EPA approval, Bayer and the agrochemical industry could face heightened risks and increased litigation costs, potentially limiting product availability or prompting reformulations.
While Bayer stock has faced pressure from the lawsuits, court rulings and settlement progress heavily influence investor confidence. A Supreme Court decision favoring Bayer could stabilize or improve its stock by diminishing liabilities, whereas continued rulings for plaintiffs could keep downward pressure.
Jefferies has maintained a "Hold" rating for Bayer with a price target of €22, while JPMorgan has maintained a "Neutral" rating for Bayer with a price target of €25. UBS maintains a "Neutral" rating for Bayer ahead of the third quarter of 2025. However, investors are advised to stay on the sidelines with regard to Bayer stock due to the ongoing glyphosate case.
In other news, Bayer has a next approval targeted in the U.S. for one of its products. Meanwhile, Orion Pharma benefits from Bayer's next approval for a blockbuster product. If the U.S. Supreme Court ultimately takes up the case, a positive decision could be made by June 2026, according to Jefferies.
Despite the challenges, Bayer has highlighted the glyphosate case as a burden on the company's stock. The company continues to face significant legal challenges from glyphosate-related lawsuits tied to its Monsanto-acquired product Roundup. Nearly 100,000 lawsuits have been settled or are ongoing, with Bayer paying about $11 billion so far to resolve claims that Roundup caused non-Hodgkin’s lymphoma and that Monsanto failed to warn users adequately.
Key recent developments include the Pennsylvania Superior Court affirming a $175 million verdict against Monsanto for an 83-year-old plaintiff who developed cancer after prolonged Roundup use, upholding $150 million of punitive damages and supporting jury findings based on scientific evidence.
As the glyphosate case unfolds, Bayer faces crucial weeks ahead that will undoubtedly shape the company's financial health, stock performance, and capacity to maintain glyphosate-based products in its portfolio moving forward.
The ongoing glyphosate dispute could potentially affect not only Bayer's financial standing but also the broader agrochemical industry, as a Supreme Court decision could either limit future Roundup litigation or allow claims to continue. Investors are closely monitoring this legal conflict, as a favorable outcome for Bayer could stabilize or improve its stock, while continued rulings for plaintiffs could keep downward pressure.
