The worst thing that could happen to Bayer was Monsanto: Justice again fails against it and loses 36% of its value in a year

Justice has once again beaten Bayer at glyphosate counts. After the August 2018 conviction, it is now a federal court in San Francisco that has considered that there is enough evidence to consider that glyphosate, one of the most widely used herbicides in the world, was key in the development of Edwin Hardeman's lymphoma .

Today in the United States, there are 11,200 lawsuits against the manufacturers of this herbicide. That is why, after the second ruling against, all analysts and investors fear that this is only the beginning of a long string of defeats in the next decade. Since Bayer bought Monsanto in June 2018, the company's shares have fallen 36% and the situation does not seem to be going for the better (at least, in the short term).

Thousands of lawsuits await their moment


The trial. As the San Francisco Federal Court released Tuesday, Roundup (Monsanto's proprietary glyphosate trademark) was a "substantial factor" in Edwin Hardeman, a 70-year-old north San Francisco neighbor, developing non-Hodgkins lymphoma. . It is the second judicial defeat in less than a year and in a court that has 'consolidated' 760 more lawsuits.

Is there no fine? No. At Bayer's request, the trial was held in two phases. In the first, it would be determined if there is any relationship between glyphosate and non-Hodgkins lymphoma. This is the phase that has ended now. From this moment on, during the second phase, the degree of responsibility of the company must be determined. The company, with international reports ruling out the relationship between glyphosate and cancer, will try to demonstrate that its conduct was appropriate.

Company reaction "We are disappointed with the jury's initial decision, but we continue to firmly believe that science confirms that glyphosate-based herbicides do not cause cancer," they explained from Bayer. The position is therefore identical to that of the August 2018 case, "the decision does not change the fact that more than 800 scientific studies, the conclusions of the United States Environmental Protection Agency, the National Institutes of Health of The United States and regulatory authorities around the world support the fact that glyphosate does not cause cancer and did not cause cancer. "

Although, from the German company that now has the civil responsibility derived from the conduct of Monsanto, they trust “that the tests of the second phase show that the conduct of Monsanto has been appropriate and the company should not be responsible for Mr. Hardeman ”, as they have explained in a statement.

Market reaction. Investors, on the other hand, are not so clear. Following Hardeman's ruling, Bayer's shares fell 12% and, although they later began to recover, they accumulated a 9.61% drop at the close of the exchange. In addition, as noted above, since June 2018, when the German giant bought Monsanto for $ 66 billion, the company's shares have fallen 36%.

In what situation is the relationship between glyphosate and cancer? In the same. In 2015, the WHO rated glyphosate as "probably carcinogenic to humans." The same category as red meat. However, all health authorities and the scientific consensus agree that it is safe when used properly: the dose that is has raised how cancerogenic it is so high that it is almost impossible to accidentally expose yourself to it.

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