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$10 billion worth of settlements for Bayer

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Bayer to pay more than $10 billion in Roundup lawsuit settlements

While the world pays attention to the new wave of infections, and some pharma companies are rallying to find a cure, others face distinct problems such as cancer claims and lawsuits. One of the largest pharmaceutical companies globally, Bayer, hit the news as it has to pay $10.9 billion in settlements due to one of its products.

The amount will go to approximately 100,000 people who claim that one of its herbicides, Roundup, causes cancer. Roundup was initially the product of the US company Monsanto, which has been bought by Bayer in 2018 for $63 billion. For more than 40 years, the product became the world’s most famous weedkiller. The lawsuits revealed that Monsanto intentionally put aside the warnings that the herbicide has potential cancer-causing chemicals, and hid it from the consumers. The herbicide that caused complainants non-Hodgkin’s lymphoma and other sorts of cancers, glyphosate, is not a carcinogen from Bayer's point of view. The US Environmental Protection Agency supports its statement.

The German giant will pay up to $9.6 billion to settle the ongoing lawsuits and $1.25 billion to cover any possible litigation that could come up in the future. The money will be paid in two installments: $5 billion by the end of this year, and the rest in 2021. Moreover, Bayer is to pay $820 million in cases related to water pollution caused by a chemical compound polychlorinated biphenyl – now banned. And for another banned herbicide, it will pay from its pocket another $400 million. 

After it was reported that Bayer would pay the settlements, the stock price climbed 6%; it lost more than 2% during today's session.

Read more about the pharmaceutical companies by accessing our Market News section!

Sources: bbc.com, nbcnews.com, media.bayer.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.