Bayer's PCB dispute in the higher court: The future of the company in danger!
Bayer's PCB dispute in the higher court: The future of the company in danger!
Bayer AG is once again faced with uncertainties that result from a current legal dispute in the United States. The Washington Supreme Court has decided to check the Erickson case, which revolves around the health effects of the chemical PCB for decades. This decision could have far-reaching consequences for the chemical and pharmaceutical.
The Court of Appeal decided in 2021 that three teachers should receive compensation in the amount of $ 185 million due to PCB loads in the Sky Valley Education Center. However, this decision was canceled by the Court of Appeal in May 2023, which resulted in hope for Bayer to be able to finally enclose the legal dispute. Now that the new case is picked up again, the chance of victory for Bayer is around 50 percent, as analysts estimate. This information illustrates the uncertainties with which Bayer investors are currently facing.
The direct effects on the shares
The uncertainty about the outcome of the procedure has affected the share prices directly. On Wednesday, Bayer's course in the meantime fell by 6.57 percent to EUR 27.32, moving towards the September low of 26.51 euros. Many previous price gains of the past few months have almost completely disappeared. The drop in the price is particularly striking when you consider that Bayer was able to achieve courses of almost 100 euros before taking Monsanto in 2018.
Despite the negative development, there have always been phases in the past in which the share was supported in the range of 25 euros. The current IPO of Bayer amounts to around 26.5 billion euros, which is well below the over $ 60 billion paid for the takeover of Monsanto. This shows how strongly the legal disputes influence the perception and value of Bayer on the stock exchange.The case around PCB and the rights of damaged
Bayer emphasizes that the court of appeal did not go far enough in its judgment, especially with regard to the so -called penalty of injuries. This is often set much higher by jury juries than the regular compensation. Bayer therefore hopes that the Washington Supreme Court will make a clear review of the law to limit future similar claims.
The PCB procedures are part of a larger heritage that Bayer has taken over by Monsanto, a company that has been confronted with severe allegations for decades, including the covering of dangers caused by the use of PCB. This makes the current legal situation very complex for Bayer and brings with it uncertainty that involves investors.
In parallel to the legal challenges, Bayer can also report progress in the drug area. The US Health Authority FDA has accepted the application for admission for the new menopause medication in Elinzanant. This remedy is intended to serve as a non-hormonal alternative to the treatment of hot flashes in women in menopause and is assessed as a potential blockbuster product. This development could set positive impulses for the company and help to alleviate the negative focus on the legal disputes.Investors will be observed in the coming weeks and months, how the Washington Supreme Court decides on the Erickson case and what other legal challenges will arise for Bayer. In a tense market environment, any new development could be of crucial importance for both the share price and for the general perception of the company.
For detailed information and current reporting on the legal challenges and developments at Bayer, See the articles on www.finance.net .