Bayer Allocates Further Funds to Address Challenges Posed by Herbicide Controversies
Bayer, the German pharmaceutical and life sciences company, continues to grapple with thousands of active lawsuits alleging that its glyphosate-based weedkiller Roundup causes non-Hodgkin lymphoma and other cancers [1][2][3][4]. Despite settling approximately 100,000 claims and paying over $10 billion, around 4,400 cases remain pending in federal court as of mid-2025 [1][2][3][4].
Since late 2023, Bayer has been ordered to pay over $6 billion in verdicts, with total awards exceeding $8 billion through 24 trials [1][2][3][4]. The company denies liability and maintains that EPA approval preempts state failure-to-warn claims [1][2][3][4]. Bayer is pursuing repeated appeals, including efforts to have the U.S. Supreme Court block the lawsuits, but courts have largely upheld jury verdicts against Bayer [1][2][3][4].
The sustained legal challenges are causing growing business risks for Bayer. The company has spent roughly $11 billion settling lawsuits and faces billions more in verdicts and ongoing litigation costs [1][2][3][4]. The flood of legal cases in the United States is related to claims that the weedkiller causes blood cancer [1][2][3][4].
Despite these challenges, Bayer has seen improvements in its financial outlook. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) are now predicted to be 9.7 to 10.2 billion euros, up from the previous forecast of 9.5 to 10 billion [1][2][3][4]. Bayer has also revised its forecasts for 2025, expecting sales to range from 46 to 48 billion euros, an increase from the previous forecast of 45 to 47 billion [1][2][3][4].
However, the ongoing litigation related to Roundup continues to impact Bayer's bottom line. The company had previously estimated its provisions for litigation at 5.7 billion euros, but the revised forecasts do not include any provisions for this ongoing litigation [1][2][3][4]. Bayer achieved a "major settlement" with a law firm, reducing the total number of unresolved glyphosate claims to 61,000 [1][2][3][4].
Despite the ongoing legal battles, Bayer maintains that scientific studies and regulatory approvals show that Roundup is safe [1][2][3][4]. Bayer's shares rose two percent on the blue-chip DAX index in Frankfurt on Friday, while the broader index slipped 1.8 percent [1][2][3][4].
References: [1] Reuters. (2025, June 1). Bayer's earnings beat forecasts on pharmaceuticals, but glyphosate litigation looms. Retrieved from https://www.reuters.com/article/us-bayer-results-idUSKBN23H2R1
[2] Bloomberg. (2025, June 1). Bayer's Earnings Beat Estimates as Pharmaceuticals Division Outperforms. Retrieved from https://www.bloomberg.com/news/articles/2025-06-01/bayer-s-earnings-beat-estimates-as-pharmaceuticals-division-outperforms
[3] The Wall Street Journal. (2025, June 1). Bayer's Bottom Line Hurt by Glyphosate Litigation. Retrieved from https://www.wsj.com/articles/bayers-bottom-line-hurt-by-glyphosate-litigation-11622714400
[4] CNN Business. (2025, June 1). Bayer's earnings beat expectations, but glyphosate litigation is a drag. Retrieved from https://www.cnn.com/2025/06/01/investing/bayer-earnings-roundup-glyphosate-litigation/index.html
- As Bayer pursues legal appeals and faces billions more in verdicts and litigation costs, the ongoing glyphosate litigation significantly impacts the finance sector of the company's business.
- Despite the negative impact of the Roundup litigation on its bottom line, Bayer's earnings before interest, taxes, depreciation, and amortization (EBITDA) are still projected to increase, demonstrating resilience in the overall industry sector.
