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The number of lawsuits alleging a link between the pesticide Bayer's Roundup and cancer has risen from 13,400 to 18,400 in just three months, highlighting the growing legal risk facing the German pharmaceutical group. and chemical.
Bayer's shares have fallen sharply over the past year, following a series of jury verdicts in California that concluded that Roundup was responsible for plaintiffs' cancer. Analysts believe that the avalanche of cases could cost the German group billions of dollars in compensation.
"Bayer continues to believe that he has meritorious defenses and intends to vigorously defend himself in all these lawsuits," the group said in a statement released on Tuesday.
Bayer announced a 21% increase in its second – quarter revenue, to 11.5 billion euros, reflecting the acquisition of Monsanto last year. Adjusted for portfolio and foreign exchange effects, the increase in revenues was only 1%.
"Bayer is on the right track in its operational activities," said Werner Baumann, Managing Director of the group.
The group confirmed its financial outlook for the rest of the year, but warned that the goals were "more and more ambitious".
In the second quarter, however, net profit decreased by almost 50% to 404 million euros. This decrease is partly the result of the "increased seasonality" of Bayer's business following the takeover of Monsanto, which made the German group more dependent on the agricultural sector. Bayer also suffered impairment losses related to the sale of its foot care company Dr. Scholl and the ongoing restructuring effort following the agreement with Monsanto.
Sales at Bayer's recently expanded crop division jumped 60% to 4.8 billion euros in the second quarter, as a result of the US $ 63 billion acquisition from last year. After adjusting for this portfolio effect and currency fluctuations, crop sales declined by 3%, impacted by "extreme weather events," Bayer said. The current result before interest, taxes, depreciation and amortization (ebitda) of the cropcience division increased by 67% to 1.1 billion euros.
In the second quarter, sales of Bayer's pharmaceutical business grew 4% to € 4.4 billion, while adjusted EBITDA rose 10% to € 1.5 billion.
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