Bayer shares soared 7%. The company got a chance to get rid of thousands of lawsuits in the US
Pharma stocks hit a high in more than two years
Bayer expects to stop lawsuits from Americans against fertilizer producer Monsanto / Photo: Alfred Sonsalla / Shutterstock.com
Shares of German pharmaceutical concern Bayer rose by 7% in Frankfurt on January 19. Investors took positively the news that the U.S. Supreme Court agreed to consider Bayer's appeal in the case of Roundup, a chemical weed killer produced by Bayer's subsidiary. Thousands of Americans have filed lawsuits against the company saying Roundup may cause cancer. Now Bayer has a chance to get rid of those risks.
Details
Shares of Bayer rose by 6.95% at the end of trading on Monday. During the day, the price rose by 8.3% to €44.98, which became the maximum for the securities since the end of September 2023.
The U.S. Supreme Court has accepted the appeal of Bayer, which is trying to challenge the claims of thousands of plaintiffs in the U.S. that Roundup can cause cancer, writes The Wall Street Journal. Bayer is challenging a $1.25 million judgment in Missouri: it was accused that it did not adequately warn about the carcinogenicity of Roundup, Bloomberg reports. The German company insists that Roundup is safe to use and argues that manufacturers should not be held liable under state laws if they comply with federal labeling requirements, the WSJ explained.
If Bayer succeeds in the Supreme Court, it could undermine thousands of lawsuits like the one in Missouri, Bloomberg noted. "The court's decision [to begin review] also strengthens Bayer's negotiating position if it is willing to settle," Jefferies analysts wrote in a note cited by the WSJ.
The weedkiller is produced by Monsanto, which Bayer acquired in 2018 for $63 billion, inheriting and related lawsuits. They have become a serious factor of pressure on Bayer shares, writes WSJ. This is the concern's second attempt to get the case heard in the Supreme Court, the newspaper notes. The decision is expected by early July. Bayer has already paid more than $10 billion in connection with the Roundup lawsuits and has set aside another $6 billion for this purpose, Bloomberg added.
Context
Dec 2, 2025 US President Donald Trump's administration has urged the US Supreme Court to consider Bayer's request to dismiss thousands of lawsuits alleging that its Roundup herbicide causes cancer.
Bayer shares have more than doubled in price over the past 12 months and have already added 20% in 2026.
This article was AI-translated and verified by a human editor
