Bayer chief claims full board backing
Bayer’s management retains the backing of its supervisory board, its chief executive said, after pressure on the company increased when a second jury in the US ruled its glyphosate-based Roundup weed killer caused cancer.
Bayer, which denies allegations that glyphosate or Roundup cause cancer, acquired Monsanto, the maker, for $63bn (€56bn) last year.
Its shares have fallen a third over the last 12 months burdened by thousands of lawsuits over a suspected cancer link to Roundup.
“The share price is significantly impacted by the legal cases related to glyphosate in America, the discounts are greatly exaggerated,” chief executive Werner Baumann said.
“The management board enjoys the full backing of the supervisory board,” said Mr Baumann — Bayer CEO for almost three years.
A US jury last week found that Roundup caused cancer, a blow to the company eight months after another jury issued a $289m verdict over similar claims in a different case. That award was later reduced to $78m and is on appeal.
Mr Baumann defended Bayer’s move to acquire Monsanto, saying it “was and is a good idea”.
Asked about a potential breakup of Bayer, Mr Baumann said the group had a clear strategy based on three divisions — pharmaceuticals, crop science and consumer health.
“We want to strategically develop these three pillars, all three markets are attractive.”
Talk of a break-up has been fueled since it emerged in December that activist fund Elliott had taken a stake.
Glyphosate is the world’s most widely used weed killer. Monsanto’s Roundup was the first glyphosate-based weed killer but is no longer patent-protected and many other versions are now available. Bayer does not provide sales figures for the product.
The US Environmental Protection Agency, the European Chemicals Agency and other regulators have found that glyphosate is not likely carcinogenic to humans. But the World Health Organization’s cancer arm in 2015 reached a different conclusion, classifying glyphosate as “probably carcinogenic to humans.”
- Reuters
