German drugs and chemicals conglomerate. Bayer spun off its industrial-chemicals division as far back as 2004. More than 20 years on, it may narrow further, separating its prescription drugs from over-the-counter medicines or spinning off its crop-sciences division.
Bayer's $63bn takeover of Monsanto, an American crop-science firm, in 2018 turned out to be perhaps the most disastrous merger in German corporate history. It exposed Bayer to legal claims related to Roundup, one of Monsanto's weedkillers, that have cost it billions, at times causing its stockmarket value to dip to less than half of what it paid for Monsanto. By early 2026, lawsuits claiming that Roundup causes cancer (which Bayer denies) had already cost the company $10bn in settlements with almost 100,000 plaintiffs. In February 2026 Bayer proposed a $7.25bn class-action settlement to resolve most current and future claims; a judge in Missouri gave it preliminary approval on March 4th 2026.
Separately, on April 27th 2026 America's Supreme Court is due to hear an appeal by Bayer arguing that federal laws on labelling chemicals take priority over those of states. The Trump administration backs the company. A ruling in Bayer's favour would invalidate most of the claims.
Bill Anderson, an American, became Bayer's boss in 2023. In March 2024 he promised that by 2026 he would contain the Roundup litigation, refresh the drug pipeline, cut costs and bring down debt. Bayer's 2025 sales were up 1.1%, to €46bn ($53bn), but a special litigation charge pushed net income into the red by €3.6bn. Net debt stood at almost €30bn, down by more than €4bn in two years. Cost cuts saved €700m in 2025.
American and European regulators have approved Lynkuet, a treatment for the symptoms of menopause. Trials of Asundexian, a stroke medication, have been encouraging. Kerendia, a kidney therapy, and Nubeqa, a cancer drug, are selling well. These are meant to replenish the pipeline after the expiry of patents for two bestsellers: Eyelea (an eye treatment) and Xarelto (a blood thinner).
An end to litigation would probably revive talk of breaking up the conglomerate, which is short of synergies. Spinning off the consumer-health unit would ease the firm's debt burden. A more radical split of the drugs and crop-science businesses would create the pure plays that investors favour.
Applause, n: The echo of a platitude from the mouth of a fool.