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Health Care Market Discussion: Roundup

ByEditor

Nov 21, 2023

The latest Market Talks covering the Health Care sector were published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET, and 16:50 ET.

According to Jefferies analysts, Bayer is facing challenges on multiple fronts that hasten the need to look at strategic options. They note that the halt to a late-stage clinical trial of experimental cardiovascular drug asundexian pushes financial risk to the edge, while share-price falls increase sensitivity to rising provisions and potential trial losses in a legal battle over its Roundup weedkiller. This suggests that the German pharmaceutical-and-agricultural group might need to sell assets and scrap dividends to buy time. However, this isn’t necessarily enough to enable large-scale investments needed in its pharma business. Jefferies has also cut its recommendation on the stock to hold from buy. Shares trade 0.3% higher following Monday’s heavy losses.

The challenges facing Bayer on multiple fronts hasten the need to look at strategic options, according to Jefferies analysts. The halt to a late-stage clinical trial of an experimental cardiovascular drug pushes financial risk to the edge, while share-price falls increase sensitivity to rising provisions and potential trial losses in a legal battle over its Roundup weedkiller. This suggests the German pharmaceutical-and-agricultural group might need to sell assets and scrap dividends to buy time. However, this isn’t necessarily enough to enable large-scale investments needed in its pharma business. Jefferies has also cut its recommendation on the stock to hold from buy. Shares trade 0.3% higher following Monday’s heavy losses.

Overall, the challenges Bayer is facing may necessitate selling assets and scrapping dividends to buy time, as well as making large-scale investments needed in its pharma business. Jefferies also cut its recommendation on the stock to hold from buy. Shares are currently trading 0.3% higher following Monday’s heavy losses. (adria.calatayud@dowjones.com) Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

By Editor

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