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German pharmaceutical company Bayer AG saw its bonds drop over 1.2 points across the curve after it suffered a setback from a court ruling and its drug development halt. Ever since Bayer’s acquisition of Monsanto in 2018, the latter’s herbicide known as Roundup has undergone major litigation challenges due to health risks. In 2021, Bayer set aside $16bn to resolve more than 100,000 cases over Roundup’s health impact. A jury verdict last Friday raised the risk that Bayer may have to tap all or even more than the above $16bn it has set aside for related lawsuits. Bayer said it will appeal the verdicts and that the product was safe. Separately, Bayer’s primary study progress on a major blood thinning experimental drug (Asundexian) has been halted due to lack of efficacy. This drug was expected to help drive growth with an estimated €5.5bn in peak sales. Bayer’s shares fell 18% to 34, losing €7.6bn in market value.
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