EPA and Justice Department agree that Bayer’s Roundup weed killer is not a carcinogen

A California man recently accused Bayer AG’s Roundup weed killer to have caused his cancer. Bayer AG is a German multinational pharmaceutical and science company. A U.S lower court had previously ordered $25 million in compensation that the company was required to pay to Edwin Hardeman. As of Friday, however, the U.S Environmental Protection Agency (EPA) in association with the U.S Justice Department commented that the decision should be reversed by the federal appeals court. Bayer has consistently reiterated that the active ingredient of the weed killer, Glyphosate, isn’t a carcinogen.

EPA And Justice Department Back Bayer AG’s Appeal To The Federal Court

As per the Californian law, all products that constituent carcinogens in the smallest of proportions must come with a label warning. In a recent statement, the U.S government agreed to Bayer’s claims of glyphosate being non-carcinogenic and saw no need for the pharmaceutical company to put a warning on the box in order to comply with the law. Bayer AG’s appeal to the federal court to abrogate the earlier $25 million judgment is now backed by the Justice Department and the EPA. Bayer’s Roundup weed killer is a widely used product in the U.S agriculture. Soybeans and a range of other crops are genetically engineered to make them more resistant against weed killer. It is then sprayed as herbicide on the fields of crops to protect them against the unwanted growth of weeds. Roundup is also applicable to golf courses and lawns. Hardeman’s lawyers had blamed Monsanto (Roundup manufacturer) in August 2018 for not informing its consumers of the potential risk of cancer upon herbicide’s use. Bayer AG acquired Monsanto for a total of $63 billion last year. Following Hardeman’s accusation, Bayer immediately lost traction in the stock market and has dropped by 23% in a little over a year.

Bayer Says It Is Unlawful To Make Claims That Contradict EPA’s Guidance

Bayer has highlighted on multiple occasions that putting a warning label would contradict with the federal agency’s guidance. In a filing on Friday, EPA and Justice Department expressed their approval for Bayer’s statement that manufacturers and sellers alike are forbidden by law to make claims about their products that challenge the EPA’s guidance. Following a year-to-date high of around €72 per share in March, the stock dropped significantly in the subsequent months and was seen trading as low as €52 in June. Much of the loss, however, has been regained with Bayer AG currently exchanging hands at €71.50. The $70.18 company is still trading around 50% down as compared to its record high of €145 in 2015.