Bayer boosts Roundup reserves and lifts sales forecast

Industry Insights from Next Move Strategy Consulting

On Thursday, German pharmaceutical and biotechnology giant Bayer announced it has allocated an additional 1.2 billion euros ($1.37 billion) in provisions to cover ongoing litigation in the U.S. related to its Roundup weed killer.

The German company stated that, on a currency-adjusted basis, it now expects annual sales to range between 46 billion and 48 billion euros—raising both ends of its previous forecast by 1 billion euros.

Bayer Faces Mounting Legal Costs Over Roundup as Cancer Claims Persist

Bayer, the German pharmaceutical and biotechnology firm, continues to face significant financial pressure from ongoing product liability litigation in the United States related to its weed killer, Roundup. The company has already paid approximately $10 billion to resolve a large number of claims alleging that Roundup, which contains the herbicide glyphosate, is linked to cancer. Plaintiffs argue that their exposure to the product—either through personal or occupational use—led to the development of non-Hodgkin’s lymphoma and other types of cancer. In response to these concerns and the mounting legal challenges, Bayer has taken steps to reformulate its consumer products in the U.S., removing glyphosate and replacing it with alternative weed-killing agents. Despite maintaining that Roundup is safe when used as directed, the company continues to navigate a wave of lawsuits and is working to mitigate future liability through legal provisions and product adjustments.

Bayer Settlement Reduces Unresolved Glyphosate Claims to 61,000

Bayer announced on Thursday that it has reached a major settlement with a plaintiffs' law firm, bringing the number of unresolved glyphosate-related claims down to 61,000. According to the company, out of a total of 192,000 claims, 131,000 have either been settled or classified as ineligible.

Bayer Previews Q2 Results, Projects 2025 EBITDA Up to €10.2B

Bayer has projected its 2025 earnings before interest, tax, depreciation, and amortisation (EBITDA), excluding one-time items, to fall between 9.7 billion and 10.2 billion euros. The German group also shared preliminary figures for the second quarter, reporting estimated sales of approximately 10.7 billion euros and an EBITDA before special items of around 2.1 billion euros. The company is set to release its full financial results for the April–June quarter on August 6.

Conclusion

As Bayer navigates mounting legal challenges tied to its Roundup weed killer, the company is simultaneously taking strategic financial steps to manage risk and reassure stakeholders. By allocating additional litigation reserves, settling the majority of glyphosate-related claims, and reformulating its U.S. consumer products, Bayer is actively working to contain the long-term impact of the controversy. Meanwhile, its raised sales forecast and solid preliminary second-quarter performance suggest underlying business resilience. As the company prepares to release full Q2 earnings on August 6, investors and industry watchers will be closely monitoring how Bayer balances legal liabilities with its broader growth trajectory.

Source: https://www.reuters.com/business/ 

Prepared by: Next Move Strategy Consulting