Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Xetra  >  Bayer    BAYN   DE000BAY0017

BAYER (BAYN)
My previous session
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsTweets

Bayer : Shares Jump in Germany After Roundup Ruling

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/11/2018 | 10:59pm CEST

By Ruth Bender and Jacob Bunge

BERLIN -- Bayer AG shares jumped Thursday in Germany after the company scored a provisional win in its rejection of a record jury award to a plaintiff who sought to hold the maker of Roundup weed killers liable for his non-Hodgkin lymphoma.

Shares in the German chemicals and pharmaceuticals firm rose 3.1% in Germany, clawing back some of the sharp losses since a California jury in August ordered Monsanto, now owned by Bayer, to pay a total of $289 million in a landmark lawsuit over whether its weed killers cause cancer.

In the U.S., the company's American depositary receipts fell 4.5% amid a broader market selloff.

Investors in Germany took relief after California Judge Suzanne Ramos Bolanos on Wednesday issued a tentative ruling for a new trial on the $250 million in punitive damages awarded to plaintiff Dewayne Johnson in the jury verdict that had spooked investors the company could face billions in potential plaintiff payouts.

Judge Bolanos wrote in the order that Mr. Johnson's attorneys didn't provide "clear and convincing evidence of malice or oppression by Monsanto," a point investors and analysts took as a step toward victory for Bayer.

A spokeswoman for Baum Hedlund Aristei & Goldman PC, the law firm representing Mr. Johnson, declined to comment.

Despite the momentary reprieve, investors and analysts caution that the tentative ruling is just one step in a legal battle whose outcome remains highly uncertain.

"The Judge's comments in the tentative ruling are more constructive than we had anticipated," said Bernstein analyst Gunther Zechmann. "Punitive damages are likely to be reduced significantly."

"On a best-case scenario this obviously provides the company a possibility it could win the retrial," Jefferies analysts wrote in a note to investors.

For Bayer, obtaining a new trial or achieving a significant reduction in punitive damages is crucial as the company is in the middle of one of the most important transformations in its corporate history with its recent $63 billion purchase of Monsanto, the U.S. seed and pesticide giant that manufactures Roundup and crop seeds engineered to withstand the spray.

Bayer is under pressure to succeed Monsanto's integration and deliver on promised benefits following an arduous and longer-than expected regulatory review that forced Bayer to shed more assets than planned. The jury verdict hit Bayer a week before the German company was allowed to officially take over Monsanto.

Bayer is up against more than 8,700 similar cases from plaintiffs alleging that glyphosate, the main compound in Bayer's Roundup herbicide, causes cancer. Next cases are set to start in February. It also isn't yet clear when Judge Bolanos may complete the ruling and Mr. Johnson is likely to appeal if it is completed.

"The message of this ruling is relatively strong and could influence other jurors. But you can't call an all-clear yet," said Manfred Manns, portfolio manager at Union Investment, which holds roughly 1% in Bayer. Besides the outcome of the legal cases, Mr. Manns said, Bayer will have to succeed in turning around Monsanto's poor image.

If completed, Wednesday's ruling would grant a motion by Bayer arguing that the amount of damages awarded wasn't justified and that the evidence didn't prove the company intended to harm the plaintiff.

Bayer executives had been surprised by the high sum awarded by the jury and considered that jurors had been swayed by overly emotional and speculative arguments from the plaintiffs' lawyers, according to people familiar with the matter. Bayer employees in recent weeks have also grown nervous about the sharp fall in Bayer's stock price as most hold shares in the company, the people said.

Lawsuits over Roundup were prompted by the International Agency for Research on Cancer, a unit of the World Health Organization, in 2015 classifying glyphosate as likely having the potential to cause cancer. Monsanto and other agricultural groups have been pushing back, pointing to studies by academics and agencies like the U.S. National Institutes of Health and Environmental Protection Agency that showed no cancer risk.

Bayer on Thursday said the ruling backed its view that the verdict was at odds with science proving glyphosate is safe.

"The jury's verdict was wholly at odds with over 40 years of real-world use, an extensive body of scientific data and analysis, including in-depth reviews by regulatory authorities in the U.S. and EU, and approvals in 160 countries, which support the conclusion that glyphosate-based herbicides are safe when used as directed and that glyphosate isn't carcinogenic," Bayer said in a statement.

Bayer said the judge is also considering the company's motions for a new trial on the liability verdicts and reduction of the $39 million in compensatory damages the jury awarded.

Write to Ruth Bender at Ruth.Bender@wsj.com and Jacob Bunge at jacob.bunge@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BAYER
10/18BAYER : Immediate support for earthquake victims in Indonesia
AQ
10/18BAYER : Brazil court denies Monsanto bid to halt seed licensing to bankrupt firm
RE
10/17BAYER : Immediate support for earthquake victims in Indonesia
PU
10/17BAYER : biological crop protection product combats bacterial and fungal crop dis..
PU
10/17Beset by copies, Roche gets sales boost from China
RE
10/16BAYER : stock sets seven-year record after favourable court ruling
AQ
10/16BAYER : supports farmers with a wide range of integrated agronomic solutions
PU
10/16JURORS : Don't throw out $289M weed killer cancer verdict
AQ
10/15BAYER : Could Outsource Some Drug Research -Reuters
DJ
10/15BAYER : may outsource some drug research - works council
RE
More news
News from SeekingAlpha
10/19Hoth Therapeutics Files For $10.5 Million IPO 
10/19ASSEMBLY BIOSCIENCES : A Horseman Of The HBV Core-Pocalypse? 
10/17COVESTRO : Ultimate Buying Opportunity With A FCF Yield Of 16.0% 
10/15BAYER : A Pleading For Glyphosate 
10/14CATALYST BIOSCIENCES : Rare Risk/Reward Opportunity 
Financials (€)
Sales 2018 39 290 M
EBIT 2018 7 500 M
Net income 2018 4 932 M
Debt 2018 39 300 M
Yield 2018 3,67%
P/E ratio 2018 14,99
P/E ratio 2019 14,73
EV / Sales 2018 2,84x
EV / Sales 2019 2,30x
Capitalization 72 357 M
Chart BAYER
Duration : Period :
Bayer Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BAYER
Short TermMid-TermLong Term
TrendsBullishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 99,5 €
Spread / Average Target 28%
EPS Revisions
Managers
NameTitle
Werner Baumann Chairman-Management Board
Werner Wenning Chairman-Supervisory Board
Wolfgang U. Nickl Chief Financial Officer
Katharina Jansen Head-Science & Research
Hartmut Klusik Head-Human Resources, Technology & Sustainability
Sector and Competitors
1st jan.Capitalization (M$)
BAYER-23.72%83 840
JOHNSON & JOHNSON-4.19%374 244
PFIZER20.87%257 933
NOVARTIS0.07%220 104
ROCHE HOLDING LTD.-4.56%206 610
MERCK AND COMPANY23.44%192 044