Berlin (AFP) – German pharmaceuticals and agrichemicals firm Bayer said Friday it could be forced to pull its Roundup weedkiller from the market if it is not able to contain simmering legal troubles. “We’re nearing a point where the litigation industry could force us to even stop selling this vital product,” CEO Bill Anderson said at Bayer’s annual general meeting. The group had “no specific plans” to discontinue sales in the United States, Anderson said in a question-and-answer session. Bayer, however, “cannot continue to market the product in the way we have in the past…in a financially sustainable way because of the lawsuits,” he added.
In Anderson’s opinion, it was “very important for US farmers, US consumers…to make changes in the law.” The stakes were also “really high” for Bayer, which has seen its share price tumble in the wake of its acquisition of Roundup-maker Monsanto in 2018. “The status quo is not an option,” Anderson said. Bayer has long battled to bring the legal troubles under control and has said it aims to significantly contain litigation “by the end of 2026.” Already, the Leverkusen-based group has spent over $10 billion (8.8 billion euros) to settle cases in the United States alleging that Bayer failed to disclose Roundup’s health risks.
– US court battle – Claimants say that glyphosate, the active ingredient in Roundup, causes blood cancers, while Bayer says scientific studies and regulatory approvals show that the weedkiller is safe. Bayer this month made another request for the US Supreme Court to intervene in the case, its third such attempt and the first since Anderson took the reins in 2023. After being twice rebuffed by the court, Bayer is hopeful of more success following rulings by federal appellate courts, which the German group said support its case.
Shareholders on Friday approved a potential capital increase through the issuance of new stock requested by management to cover possible legal costs related to Roundup. Speaking at the meeting, Anderson said he would move forward with the capital increase “in connection with measures to substantially contain litigation in the United States –- and only after first considering other financing options.” Shares in Bayer gained 2.3 percent on the Frankfurt Stock Exchange on Friday, among the better performers in Germany’s blue-chip DAX index.
© 2024 AFP
