Bayer, the renowned German drug company, experienced a sharp decline in its stock value on Monday following the announcement that it would be halting the trial of a promising blood thinner.
The company’s shares on the Frankfurt stock exchange plummeted by 20%, reaching their lowest point since 2009. The American depositary receipts of Bayer, traded under the ticker symbol “BAYRY,” remained inactive during premarket trading.
The decision to terminate late-stage testing of the drug called asundexian, which aimed to treat heart disease, was made due to its lack of evident effectiveness. In January, Bayer had high hopes for the drug, predicting potential sales exceeding $5 billion. It was considered a significant driving force for the growth of Bayer’s pharmaceutical portfolio.
In addition to this setback, Bayer also faced defeat in a trial concerning its widely used weedkiller, Roundup. The company had acquired Roundup when it acquired Monsanto in 2018. Following a court ruling in Missouri, Bayer now faces a payment of $1.6 billion. Despite this outcome, Bayer maintains its belief in the safety of Roundup’s key ingredient.
Renowned for its invention of aspirin, Bayer has already settled over 100,000 claims of Roundup causing cancer. These ongoing concerns have resulted in a 30% decrease in the company’s stock value this year.