Bayer Faces a High-Stakes Gamble: Glyphosate Threatens US Supply While FDA Accelerates Drug Reviews

Bayer stock down 9% YTD as CEO threatens halt of US glyphosate production; FDA grants accelerated reviews for three drugs. Legal deadlines and new CFO reshape strategy.

Bayer is navigating a split-screen reality. On one side, its pharmaceutical pipeline is gaining momentum with three accelerated FDA reviews. On the other, the glyphosate legal quagmire has driven CEO Bill Anderson to threaten an unprecedented halt in US production of the weedkiller. The stock is caught in the crossfire, down more than 9% year to date and hovering below its 50-day moving average.

Anderson’s warning carries real weight. Bayer is the last remaining glyphosate manufacturer on American soil, and a production stoppage would force US farmers to rely entirely on imports from China. The company has also ruled out spinning off its Monsanto agricultural unit, a move some investors had speculated about. Instead, Bayer intends to resolve the legal mess within its current structure.

Two pivotal legal events are now converging. The opt-out deadline for Bayer’s $7.25 billion class-action settlement expired Thursday, while the Supreme Court is expected to rule in Monsanto v. Durnell by the end of June. If the justices side with Bayer, analysts estimate that up to 80% of the roughly 100,000 active claims could be thrown out. But the picture is complicated further: plaintiffs’ attorneys have petitioned to move the settlement proceeding from Missouri to California, a venue change that could unravel the agreement.

Amid the legal noise, Bayer’s drug development operation is delivering concrete progress. The FDA has granted accelerated review status to three candidates: Asundexian, an anticoagulant; Kerendia, already approved for chronic kidney disease in diabetes; and Sevabertinib for a specific form of lung cancer. The designation does not guarantee commercial success, but it signals the agency sees potential in Bayer’s pipeline. The company is also bolstering its ophthalmology portfolio with the planned acquisition of Perfuse Therapeutics. The initial price tag is $300 million, with potential milestone payments taking the total to $2.45 billion, focusing on glaucoma treatments.

Leadership changes are adding another layer of strategic recalibration. Judith Hartmann took over as chief financial officer on June 1 2026, stepping into a role that demands strict capital discipline as the company battles legal liabilities. With a market capitalization of roughly €34.5 billion, the new CFO has limited room to manoeuvre on legacy risks but can redirect resources to higher-growth areas.

The stock closed Thursday at €34.77, a gain of 0.72%, after shedding more than 8% over the previous seven days. The relative strength index stands at 34.9, inching into oversold territory — though it had dipped to 33.0 earlier in the week. At approximately 10% below its 50-day average of €38.50, the shares are trading at a distinct discount to recent norms. Longer term, the picture is less grim: Bayer still carries a 37% gain over the past twelve months.

Operationally, the core business remains solid. Management confirmed its full-year forecast on a currency-adjusted basis, with the Crop Science agriculture division driving the first-quarter results. Yet investor skepticism persists. Every positive pipeline update is overshadowed by the roundup litigation overhang, creating a persistent valuation discount.

The Supreme Court ruling in late June will be the next major catalyst. If Bayer wins, the legal cloud lifts significantly. If not, Anderson’s production-stoppage ultimatum may shift from a threat to a reality — with consequences that extend far beyond the company’s balance sheet.