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The German company announced its exit from the animal health, solar and foot care sectors to focus on its pharmaceutical and agricultural activities
Bayer plans to cut 12,000 jobs and leave the animal health sector to appease Wall Street, which has punished the company for the numerous lawsuits it has filed following the $ 63 billion acquisition of Monsanto.
The German company has announced a series of moves, including the exit of the solar energy and foot care segments, saying it would strengthen its pharmaceutical and agricultural activities, which are at the center of its strategy. The reductions, of which a significant number in Germany, represent about 10% of the active population.
After the announcement, his shares fell 2.06% to 15:23. in transactions in Frankfurt, erasing the initial gains.
The company has lost about 30,000 million euros ($ 34,100 million) in market value since August, when a California jury ruled against its iconic Roundup herbicide, claiming that it "s worthless. he might have caused the cancer of a gardener. At least 9,000 more lawsuits are pending.
After the fall of about 40% of the shares last year, Bayer doubted more and more of its ability to remain a conglomerate. In the absence of an obvious synergy between divisions selling herbicides, anticancer drugs and cat-repellent collars, a change was widely expected before Wednesday's investor meeting in London.
Health segments also face challenges. The pharmaceutical unit will lose patent protection of its two major drugs over the next five years, and few new drugs can offset this decline. The consumer health division, which strengthened four years ago with brands such as Claritin, was limping and was facing a third year of declining sales.
The company announced non-monetary impairments and write-offs totaling 3,300 million euros in the consumer health and pharmaceuticals division for the fourth quarter. It also plans to more than double to 2,600 million euros per year by 2022, thanks to synergies resulting from the Monsanto acquisition.
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