Bayer loses 19% on the stock market. In addition to Roundup, the trial for an innovative anticoagulant drug fails
Bayer, the famous chemical and pharmaceutical multinational, today loses 19% in its stock market price in a disastrous moment due to the combination of two very negative and contemporary news.
Meanwhile, this is the performance of its stock market price:
Why this fall? There are two reasons. We talked about the first yesterday, with the US court ruling awarding 1.5 billion euros in reimbursement to three people who sued the Monsanto subsidiary for damages from the herbicide Rounndup/Glyphosate. Considering that there are thousands of cases waiting to be decided there is a risk that there will be a devastating destruction of financial resources for German society.
But today a second piece of bad news arrived: Bayer interrupted a large, late-stage study testing a new anticoagulant drug, Asundexian, due to lack of efficacy, putting an end to a product that appeared promising.
The situation is so bad that Bayer's new CEO, Bill Anderson, is weighing options to break up the maker of prescription drugs, consumer health products, crop chemicals and seeds in an effort to boost a stock price battered. It is also trying to streamline decision-making by cutting management positions.
Markus Manns, portfolio manager at Union Investment in Germany, said Anderson now faces “Herculean” challenges.
“The removal of asundexian from our model suggests significant challenges for the company's pharmaceutical business,” Barclays analysts said, adding that it comes as a total surprise. An unmitigated disaster because Bayer had entrusted a good part of its industrial policy to Asundexian and was developing it not in collaboration with other parties, as is often done to reduce costs and risk.
Now Bayerm's entire prescription drug division is on edge. Its closure would be a huge blow for the multinational.
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The article Bayer loses 19% on the stock market. In addition to Roundup, the trial for an innovative anticoagulant drug fails, it comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-bayer-perde-il-19-in-borsa-oltre-a-roundup-fallisce-il-trial-per-un-farmaco-anticoagulante-innovativo/ on Mon, 20 Nov 2023 12:47:41 +0000.