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Home / Insurance / The Bayer share continues its route after $ 2 billion in the Roundup attempt

The Bayer share continues its route after $ 2 billion in the Roundup attempt



(Reuters) – Shares in Bayer fell as much as 5% on Tuesday after a jury awarded more than $ 2 billion to a couple in California in the largest US jury's verdict against the company over allegations that its Roundup weedkiller causes cancer .

This means that the stock exchange keeps the rate closing at its lowest level for almost seven years, although the penalty is likely to be reduced due to the highest court courts in the United States that limit the relationship between punishment and compensation damages to 9: 1. The jury established the total damages of $ 2 billion and added $ 55 million to the compensation salary, and concluded that Roundup – based on the herbicide glyphosate ̵

1; had become defective and that the company did not warn of the herbicide's alleged cancer risk. [19659002] The shares were down 2.5% to € 55.05 ($ 61.78) at 0905 GMT.

Bayer said in a statement on Monday that it was disappointed with the verdict and would appeal. A spokesman called the jury's decision "exaggerated and inexplicable".

It was the third consecutive US jury's verdict against the company in disputes over the chemical, which Bayer acquired as part of its purchase at Monsanto for $ 63 billion last year.

"Obviously, we predict that much of the $ 2 billion criminal damage is likely to be significantly reduced in appeal," said JP Morgan analyst in a note.

"However, the level of compensation damages is still likely Something of a concern to the market in view of the level is above the case of Hardeman "they added, referring to $ 5 million in compensation damages awarded to a plaintiff in an earlier case.

The broker said the trials were distorting Its valuation of the company by EUR 5 billion (EUR 5.6 billion), but it will take until mid-2020 for more cases and a number of appeal decisions to provide greater clarity.

Bayer, inventor of aspirin and manufacturer of stroke per preventive drug Xarelto and Yasmin birth control pills, face US trials from more than 13,400 plaintiffs over herbicide bag

The Group's market value has fallen below what Bayer paid for Monsanto after throwing about EUR 40 billion since the August ruling.

US Environmental Protection Agency this month confirmed that glyphosate was safe to use. The European Chemicals Agency and other regulators around the world have also found glyphosate that is unlikely to be carcinogenic to humans.

World Health Organization However, in 2015, the International Agency for Cancer Research concluded that the chemical is likely to cause cancer. [19659002] Bayer, who was chided by investors for the stock market at the Annual General Meeting this month, has said that the litigation did not affect strong demand from US lawns and gardeners for their glyphosate-based herbicides, adding that US demand for Peasants continued to be driven by the weather. .

Under a pressure to dispose of assets, including its animal health ward, Bayer said on Monday that it had agreed to sell the US sun-protection brand Coppertone to the Nivea owner Beiersdorf for $ 550 million.

In further cases from the takeover, Bayer said on Monday that Monsanto, being investigated by French prosecutors to compile files of influential people such as the magazine lighthouses and researchers in France, probably did the same throughout Europe and suggested a potentially broader problem.

                    


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