Expert Insights on the Health Care Market: A Comprehensive Overview

According to Jefferies analysts, Bayer is facing challenges on multiple fronts that require strategic options. A halt in a late-stage clinical trial of an experimental cardiovascular drug increases financial risk, while falling share prices 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 may need to sell assets and scrap dividends to buy time. However, this might not be enough to enable large-scale investments needed in its pharma business. Jefferies has cut its recommendation on the stock from buy to hold. Following Monday’s heavy losses, shares are currently trading 0.3% higher.

The challenges facing Bayer on multiple fronts require strategic options, according to Jefferies analysts. The halt in a late-stage clinical trial of an experimental cardiovascular drug increases financial risk, while falling share prices 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 may need to sell assets and scrap dividends to buy time. However, this may not be enough to enable large-scale investments needed in its pharma business. Jefferies has cut its recommendation on the stock from buy to hold following Monday’s heavy losses. Currently, shares are trading 0.3% higher after Monday’s significant losses (adria.calatayud@dowjones.com). Copyright ©2023 Dow Jones & Company, Inc