Bayer Roundup Lawsuit: Why Did the German Pharma Company’s Stock Soar After the Court Decision?

German biotechnology and pharmaceutical giant Bayer‘s stock rose by about 13% on Friday following the company’s victory in a court case challenging allegations that its Roundup weed killer causes cancer. Pennsylvania landscaper David Schaffner, the plaintiff, alleged that Bayer’s Monsanto division broke state law by neglecting to include a cancer warning on the label of Roundup. Pennsylvania regulations were superseded, according to a US appeals court, by federal law governing the pesticide’s warning label.

Roundup’s Legal Issues and Bayer’s Share Performance: Is Glyphosate Safe?

Glyphosate, the primary ingredient in Roundup, is safe, according to Bayer, which continues to stand fully behind the brand. The company expressed satisfaction with the verdict, according to Reuters.

• In June 2018, the German pharmaceutical firm successfully paid $63 billion (about €57 billion) to acquire the agricultural company Monsanto.
• Since Bayer was charged with billions of euros in damages for Monsanto’s alleged mismanagement of the weedkiller product, the company’s shares have dropped roughly 49% over the last 12 months.
• One of the most popular weedkillers in the US, Roundup, was phased out for household use by Bayer last year.

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