Why Bayer Sinks a Staggering 21.3% on the Frankfurt Stock Exchange

The shares of the German chemical and pharmaceutical group Bayer sunk up to 21.3% on Monday, November 20th, on the Frankfurt Stock Exchange after the company confirmed the interruption of a study for the development of a drug aimed at reducing the risk of stroke. The news has coincided with a new fine in the United States, related to the use of glyphosate in Roundup, Monsanto’s herbicide.

However, as the session in Frankfurt has progressed, Bayer shares have managed to partially reduce the losses recorded at the opening. In this sense, shortly before the mid-session, they were trading at a discount of around 18% compared to last Friday’s close.

In this way, the market capitalization of the Leverkusen multinational has been reduced by more than €7 billion in just a few hours, in what is the largest stock market collapse in a single day in the history of Bayer.

Read more about Bayer and find out why the company’s shares plummeted by more than 20% in a single trading day on the Frankfurt Stock Exchange, and find the latest financial news of the day with our companion app Born2Invest.

The German pharmaceutical company Bayer announced that it was studying the spin-off of Consumer Health, its non-prescription medicines business

A few days ago, a jury in Missouri (United States) ordered the company to compensate a group of plaintiffs with $1.56 billion who claimed to have become ill from the use of the herbicide Roundup, marketed by Monsanto, according to Bloomberg.

Bayer is currently in another trial involving the drug before a state court jury in Philadelphia and is scheduled to begin another case in California in December, in addition to at least three other cases that will begin, also in Pennsylvania, over the next few months.

Two weeks ago, the German pharmaceutical company announced that it was studying the spin-off of Consumer Health, its non-prescription medicines business, in addition to preparing a workforce adjustment. The news came after the publication of the third quarter results, in which Bayer recorded losses of €4.57 billion, a figure that contrasted with the profits of €3.54 billion recorded in the same period of the previous year.

In September of this year, Bayer initiated an employment regulation file (ERE) in Spain that affected  135 people in the pharmaceutical division. Specifically, the organization currently has more than 2,400 professionals in the country, so the measure affected more than 5% of its employees.

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(Featured image by AbsolutVision via Pixabay)

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