The clock is ticking for Bayer. With a landmark US Supreme Court hearing just days away, a shareholder meeting that promises to be anything but routine, and a fresh investigative report laying bare the company’s lobbying tactics, the German pharmaceutical and agricultural giant is navigating one of its most consequential weeks in years.
A Decade of Underperformance Laid Bare
Shareholders arriving for Friday’s virtual annual general meeting in Leverkusen have been handed a stark scorecard. Ingo Speich, head of sustainability and corporate governance at Deka Investment, did not mince words, describing the period since Bayer announced its ill-fated Monsanto takeover on May 23, 2016, as a “decade of decline.” The numbers back him up: the DAX index, including dividends, has outperformed Bayer’s stock by a staggering 168 percentage points over that stretch.
Even a roughly 90-percentage-point rally since last year’s AGM has done little to repair the damage. The stock slipped around 1% in XETRA trading on Friday to €39.62, making it one of the weakest performers in the German blue-chip index. Technical analysts are watching closely: the shares have already fallen below the 100-day moving average of €40.33, and a break under the 200-day line at €34.16 would threaten the uptrend that has been in place since May 2025.
The Supreme Court Pivot
All eyes are now on Monday, April 27, when the US Supreme Court hears arguments on the fundamental liability question surrounding glyphosate. The ruling will set the stage for roughly 65,000 outstanding Roundup cancer lawsuits — a legal overhang that has weighed on Bayer’s free cash flow and balance sheet for years.
The company has been pursuing a multi-pronged strategy. On the legal front, it is leaning on an executive order from President Trump that mandates domestic production of crop protection chemicals — a directive Bayer has pledged to follow. On the political front, a new investigation by the platform EXPOSEDbyCMD has revealed that Bayer launched the “Modern Ag Alliance” (MAA) in 2024. The group’s goal: to pressure the US Congress into inserting a Roundup immunity clause into the next Farm Bill, effectively extinguishing tens of thousands of open cancer claims through legislation.
Should investors sell immediately? Or is it worth buying Bayer?
Financial Breathing Room, but No Cushion
Financially, Bayer has made some progress. Net debt fell 8.5% last year to just under €30 billion — an improvement, but hardly a comfortable level. The company is proposing an unchanged dividend of €0.11 per share, and management has guided for revenue of up to €47 billion this year, with operating earnings of around €10 billion.
Despite the harsh criticism from Deka, the asset manager has signaled it will vote in favor of all agenda items, including the discharge of the board. The message: investors are willing to give CEO Bill Anderson credit for reducing risk, even as they condemn the past.
What Comes Next
The week ahead will test Bayer’s turnaround narrative on multiple fronts. Friday’s AGM will vote on the dividend proposal. Monday brings the Supreme Court hearing, the outcome of which will define the company’s financial latitude for years to come. And on May 12, the next quarterly results will provide a hard-nosed check on whether the restructuring is gaining traction.
For now, Bayer’s stock is trading around €40, up 82% over the past twelve months. But as the legal and political battles intensify, the real test is only just beginning.
Ad
Bayer Stock: Buy or Sell?! New Bayer Analysis from April 24 delivers the answer:
The latest Bayer figures speak for themselves: Urgent action needed for Bayer investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from April 24.
Bayer: Buy or sell? Read more here...
