BLOG

Bayer Stock Tumbles After Jury Finds Weed-Killer Roundup Caused Cancer


Link: https://www.investors.com/news/technology/bayer-stock-dives-court-finds-weed-killer-roundup-caused-cancer/
 

Bayer's (BAYRY) market cap shrank by more than $6 billion Wednesday after a California jury found its Roundup brand weed killer caused cancer. Bayer stock slid more than 9%.

On the stock market today, Germany-based Bayer's stock plunged 9.3%, to 17.85, in high volume. Earlier, Bayer stock toppled as much as 11.3%. The slide shaved Bayer's market capdown to about $62.3 billion.

Reuters reported that the Tuesday decision in a San Francisco, Calif., courtroom was unanimous. The jury determined weed-killer Roundup caused cancer for plaintiff Edwin Hardeman. In the next phase beginning Wednesday, the jury will determine liability and damages.

Bayer denied the allegations in a written statement Tuesday. The active ingredient in Roundup is called glyphosate. Consumers used it "safely and successfully" as a weed killer for four decades, Bayer said. Bayer acquired Roundup when it bought Monsanto for $66 billion last year.

"We are disappointed with the jury's initial decision, but we continue to believe firmly that the science confirms that glyphosate-based herbicides do not cause cancer," Bayer said.

Numerous Lawsuits Face Weed-Killer Roundup

More than 11,000 Roundup lawsuits exist in the U.S., according to Reuters. In August, a California jury awarded $289 million to one plaintiff after determining the weed killer caused his cancer. In later action, a court cut that payout to $78 million.

"We are confident the evidence in phase two will show that Monsanto's conduct has been appropriate and that the company should not be liable for Mr. Hardeman's cancer," Bayer said after the late Tuesday decision.

Bayer noted the jury decision has no bearing on future cases and trials.

"We have great sympathy for Mr. Hardeman and his family, but an extensive body of science supports the conclusion that Roundup was not the cause of his cancer," the firm said. "Bayer stands behind these products and will vigorously defend them."

J&J Facing Allegations Powders Led To Cancer

The case follows similar pressure facing Dow Jones component Johnson & Johnson (JNJ). In recent months, J&J has faced mounting claims that its talc-based baby powders contained cancer-causing asbestos.

In February, the company confirmed federal officials are digging into the allegations. J&J also owes billions in court cases. In July, a court ruled J&J must pay $4.7 billion to 22 women in Missouri who say asbestos in J&J's powders led them to develop ovarian cancer.

J&J also faces other cases in New Jersey and California.



VOLTAR