ST. LOUIS — Bayer AG, which is engaged in settlement talks over lawsuits brought by 52,500 plaintiffs claiming the Roundup weedkiller caused their cancer, may benefit from the shutdown caused by the COVID-19 pandemic, analysts say.
The shutdown has closed courthouses around the country, preventing additional lawsuits against Bayer — which lost the only three cases to go to trial — from going forward.
"That gave more time to assess the impact of the pandemic and may help Bayer keep the total amount of Roundup settlements under $10 billion," Bloomberg reported.
Bayer's stock price also has been made more attractive by the epidemic, analyst Riccardo Bartoloni wrote.
"Bayer can be a very good opportunity today: It is a well-established company that's very cheap at the moment," he said. "The coronavirus outbreak has generated an even more convenient price." Bayer was trading in the $17 range Tuesday.
Bayer, which acquired Roundup in its $63 billion acquisition of St. Louis-based Monsanto Co. in 2018, also raised concerns about liquidity due to a recession and a possible Roundup settlement. The German company said it would consider only a “financially reasonable” settlement that resolves the potential for future claims.
Click here for more stories from the St. Louis Business Journal.
More Coronavirus Coverage
- Lab mass-processing FDA-approved COVID-19 antibody test
- As hotel taxes evaporate, so do millions in funds for Explore St. Louis, America's Center and other public facilities nationwide
- How to make your own hand sanitizer at home with ingredients you actually have at home
- New toy line honors doctors, nurses, retail workers in coronavirus pandemic
- What the outbreaks at meat processing plants mean for St. Louis
