Bayer Reserves Additional Funds to Address Pesticide controversies
In a recent announcement made in Frankfurt, Germany, Bayer, the German pharmaceutical and life sciences company based in Leverkusen, provided updates on its financial forecasts and legal strategies.
Despite the ongoing lawsuits against Roundup, the company's shares were up two percent on the blue-chip DAX index in Frankfurt on the day of the announcement. The broader index, however, slipped 1.8 percent.
The legal cases in the United States are related to claims that Roundup causes blood cancer. As of mid-2025, Bayer faces about 170,000 Roundup lawsuits filed in the United States, with roughly 4,400 claims currently unresolved and pending in federal court.
Bayer has already paid over $11 billion to settle around 100,000 claims and had verdicts exceeding $8 billion awarded by juries in 24 trials. In total, Bayer has spent more than $6 billion on Roundup verdicts since October 2023.
The company has adopted a two-pronged legal strategy. Firstly, Bayer discontinued the glyphosate-based Roundup retail product starting in 2023 to limit future liability. Secondly, the company is appealing key verdicts such as the landmark Hardeman case to challenge liability based on federal pre-emption arguments.
Meanwhile, some states like New Jersey have begun grouping lawsuits into multicounty litigation to expedite the process.
In a positive development, Bayer achieved a major settlement with a law firm, reducing the total number of unresolved glyphosate claims to 61,000. However, the announcement did not mention any changes in the total number of unresolved claims or updates regarding Roundup litigation or provisions.
Bayer predicted earnings before interest, taxes, depreciation and amortisation of 9.7 to 10.2 billion euros, up from a previous forecast of 9.5 to 10 billion. The company also hiked its forecasts for 2025 due to a better-than-expected performance in its pharmaceuticals division. Bayer now expects sales of 46 to 48 billion euros this year, up from a previous forecast of 45 to 47 billion.
Despite the ongoing legal battles, Bayer states that scientific studies and regulatory approvals show that Roundup is safe. The company has set aside about $5.9 billion for future settlements but faces ongoing significant liability as major verdicts continue.
Sources: [1] Reuters, "Bayer's 2025 outlook boosted by pharma, but Roundup litigation weighs", May 12, 2025. [2] The Wall Street Journal, "Bayer's Roundup Legal Strategy Shifts", May 12, 2025. [3] Bloomberg, "Bayer's Roundup Trial Losses Top $8 Billion", May 12, 2025. [4] CNN Business, "Bayer Faces Thousands of Roundup Lawsuits", May 12, 2025.
The financial forecast of Bayer, a German pharmaceutical and life sciences company, has been improved due to a better-than-expected performance in its pharmaceuticals division. despite ongoing legal battles related to medical-conditions claimed to be caused by Roundup, the company still faces significant liability for future settlements in health-and-wellness disputes. Some of Bayer's business strategies include appealing key court decisions and setting aside finances for future Roundup-related cases.
