Bayer shares dropped to cap risk from weedkiller cases
May 27, 2021, 2:02 pm

Bayer

A bridge is decorated with the logo of a Bayer AG, a German pharmaceutical and chemical maker in Wuppertal, Germany August 9, 2019. REUTERS/Wolfgang Rattay/File Photo

Ludwig Burger

Bayer (BAYGn.DE) shares dropped as much as 5% on Thursday after a U.S. judge rejected its plan to try and limit the cost of future class action claims that its Roundup weedkiller causes cancer.

The German group called into question the future sale of glyphosate-based products to residential users in the U.S., and said it would review plans to settle around 30,000 legal claims, after the judge called Bayer's plan to end years of litigation "unreasonable" on Wednesday.

"We will continue to assess financial risks as we move forward," finance chief Wolfgang Nickl said in an analyst call, when asked if the estimate of the potential financial burden had been revised.

Bayer will be spared payouts related to future cases it had outlined in its plan this year and next but will continue to set aside $2 billion for the looming risk of further claims, reflecting its view that there were no fundamental changes in the outlook.

Investors were less optimistic, with shares falling as much as 5.3% and trading 4.2% lower at 0855 GMT. Analysts at brokerage Bryan Garnier called it "the story that never ends". "This ruling will keep a Damocles sword on Bayer," even as demand for seeds and farming pesticides recovers, they added.

Bayer's top litigation lawyer William Dodero said the group would seek clearance from the U.S. supreme court on defeats suffered in jury trials and appellate courts even though the product has repeatedly been deemed safe by the U.S. Environmental Protection Agency.

A petition to review rulings in favour of Roundup user Edwin Hardeman would be filed in late summer, with a final verdict expected in the middle of next year, said Dodero.

About 125,000 users have alleged the product caused their non-Hodgkin lymphoma, a blood cancer, 96,000 of which have been resolved and a $9.6 billion settlement also included provisions for the remaining claims.

Three cases have gone to trial and in each one, juries awarded tens of millions of dollars in damages for plaintiffs.

"We are determined to resolve the Roundup litigation and minimise the risk to our company from the existing and potential future lawsuits," said Bayer Chief Executive Werner Baumann.

"We remain open to settlement negotiations on the remaining lawsuits, as long as the terms are reasonable. However, we will review this approach in the future," he added.

U.S. District Judge Vince Chhabria in San Francisco rejected as "unreasonable" Bayer's class action proposal, which would have provided compensation in return for placing limits on lawsuits. read more

Germany's Bayer acquired Roundup with its $63 billion purchase of Monsanto in 2018.

Announcing a new plan after the ruling, Bayer said it "will immediately engage with partners to discuss the future of glyphosate-based products in the U.S. residential market", which accounts for most cancer claims. read more

Bayer said that market segment was worth about 300 million euros in annual sales and one option included using a different active ingredient in Roundup, while no changes were foreseen for agricultural users.

Demand for the herbicide has remained robust throughout the litigation, Bayer added.

Reuters, May 27, 20211:57 PM EEST

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.