$10 billion worth of settlements for Bayer

By: Miguel A. Rodriguez

09:45, 14 September 2020

1593090108.jpg
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


Share this article

This information prepared by capex.com/za is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation, or the particular needs of any recipient.You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation, or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.This information may not be published, circulated, reproduced, or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of capex.com/zaJME Financial Services (Pty) Ltd trading as CAPEX.COM/ZA acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via CAPEX.COM/ZA, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15.  Magnasale Trading Ltd is the principal to the CFD purchased by investors.