Bayer Launches Dual Legal Fronts Amid Strategic Moves

Bayer AG moves to settle major U.S. Roundup litigation with a $7.25B proposal while filing a new lawsuit against Johnson & Johnson over cancer drug advertising claims.

Bayer AG is mounting significant legal and strategic maneuvers on two separate fronts. The multinational corporation is simultaneously pursuing a multi-billion dollar settlement for longstanding U.S. litigation concerning its Roundup herbicide and has initiated a new lawsuit against healthcare rival Johnson & Johnson. Investors responded with caution to this flurry of developments, reflected in a modest dip in the company's share price.

Settlement Proposal Aims to Resolve Roundup Litigation

In a major push to resolve legal uncertainties plaguing its agricultural division, Bayer presented a settlement proposal valued at $7.25 billion to a court in Missouri. This structured settlement, unveiled yesterday, is designed to address both current and future claims alleging that the glyphosate-based weedkiller Roundup causes cancer. The proposed framework would distribute payments over a period extending up to 21 years. The critical question for the market is whether this move can finally provide decisive closure and reduce the persistent legal overhang that has weighed on the business.

New Lawsuit Filed Over Cancer Drug Claims

Separately, Bayer has gone on the offensive in the pharmaceutical arena. The company filed a lawsuit today in the U.S. District Court for the Southern District of New York against Johnson & Johnson and its subsidiary, Janssen Biotech. The legal action centers on allegations of misleading advertising for J&J's prostate cancer drug, Erleada.

Bayer contends that a recent promotional campaign contains scientifically flawed claims, specifically an assertion that Erleada reduces mortality risk by 51% compared to Bayer's competing drug, Nubeqa. The German firm argues this comparison relies on a distorted data analysis. From January through September 2025, Nubeqa generated sales of approximately €1.63 billion, while Erleada recorded $2.62 billion in revenue for the same period. Bayer is seeking an injunction to halt the advertising campaign and is pursuing damages.

Supply Chain Investment and Market Performance

Beyond the courtroom, Bayer is working to bolster its operational foundations. The company finalized a cooperation agreement with Voyageur Pharmaceuticals, involving investments of up to $2.35 million for an iodine production study in Oklahoma. This partnership secures Bayer exclusive rights to future supply contracts for contrast media raw materials, enhancing the resilience of its pharmaceutical supply chain.

On the trading floor, Bayer shares experienced slight pressure, declining 1.44% to $12.36. With a market capitalization of $52.68 billion, the stock continues to trade within its broad 52-week range of $5.30 to $14.85. Market attention is now firmly fixed on the Missouri court's impending decision regarding the acceptance of the monumental Roundup settlement proposal, a verdict that will serve as a key benchmark for the equity's valuation moving forward.