Yesterday, Bayer released their annual report. The outlook does not look good for the pharmaceutical company even though medical corporations will be looking profit immensely off of the global pandemic of the coronavirus. However, Bayer may have to either liquidate assets or to borrow capital to pay off on thousands of lawsuits.
Bayer would not have been in this problem if they did not choose to buy the agricultural giant Monsanto for $63 billion in 2018. Now, thousands of lawsuits have been filed against them because of the weedkiller RoundUp that is manufactured by Monsanto. Glyphosate, the main active ingredient in RoundUp, has been scientifically proven to be a carcinogen. Bayer is looking to set up a settlement and are seeking to cut their losses at an estimated $12 billion.
However, a new problem has arisen. Last week, Bayer was ordered to pay a farmer $265 million due to a pesticide called dicamba that is also made by Monsanto. The dicamba drifts on to adjacent fields and kills all of the crops. As of now, there are currently 170 dicamba cases filed against Bayer. That could cause Bayer to lose another $45 billion potentially. If you like Bayer aspirin, then you will probably need to stock up.