Bayer, the renowned German drug company, experienced its steepest decline in three years in Germany on Monday following the announcement that it would be discontinuing the trial of a new blood thinner.
The company’s stocks on the Frankfurt exchange plummeted by a staggering 20%, reaching their lowest point since 2009. Meanwhile, Bayer’s American depositary receipts, traded under “BAYRY,” remained inactive during premarket trading.
Bayer revealed on Sunday that the late-stage testing of a drug called asundexian, intended for heart disease treatment, would be halted due to its apparent lack of effectiveness. This decision was quite unexpected, considering that in January, Bayer had projected the drug’s sales to potentially exceed $5 billion, positioning it as a major catalyst for growth within the company’s pharmaceutical portfolio.
Furthermore, Bayer faced a separate setback as it recently lost a trial involving its widely-known weedkiller Roundup, which it acquired through the purchase of Monsanto in 2018. A court in Missouri ruled against Bayer, necessitating a payment of $1.6 billion. Despite this ruling, Bayer continues to affirm the safety of Roundup’s main ingredient.
Notably recognized as the inventor of aspirin, Bayer has already settled over 100,000 claims alleging Roundup’s association with cancer. Consequently, the company’s shares have already experienced a 30% decline this year alone.