Bayer shares are lower Wednesday, after the German pharmaceuticals giant reported mixed second quarter earnings and adjusted its full-year forecast.
While Bayer proudly discussed the purchase of Monsanto, reports suggest the firm now faces years of court dealings, as the number of cases being brought against its weed killer products has risen to over 8,000.
By 1315 BST, Bayer shares were 1.22% lower at €78.86. The stock has been lower-to-steady in recent weeks.
Bayer’s Q2 earnings
Bayer’s group earnings details showed the company’s core Q2 revenues grew 3.9%, compared with a year earlier. That gain was achieved thanks to the Monsanto purchase, as its sales supported the company amid weaker consumer healthcare sales.
“The acquisition of Monsanto brings together two strong and highly complementary businesses: Bayer’s innovative chemical and biological crop protection portfolio and Monsanto’s exceptional expertise in the field of seeds and traits,” Werner Baumann, Chairman of the Board of Management.
“We are now a leader in the agricultural industry,” he added.
However, although the Monsanto purchase – described by Bayer as “the biggest acquisition in its history” – helped boost its Q2 earnings, the German business also downgraded its full year outlook for the group.
The company lowered its forecast for adjusted core earnings per share for the year to €5.70 – €5.90 euros, down from €6.64 in 2017.
That detail appeared to carry more weigh with investors than the increased outlook for sales to hit over €39 billion, up from the previous forecast for sales of below €35 billion.
Weed killer court cases
Bayer’s Monsanto purchase has indeed brought some good news for the business. However, it has also brought likely years long legal troubles for the business, too.
Monsanto has been ordered to pay almost €300 million in damages for the first in what’s expected to be over 8,000 court cases related to its Roundup weed killer products.
The US court supported claims from a man that his regular use of the Roundup weed killer, was a contributing factor to his contraction of non-Hodgkinson’s lymphoma form of cancer.