Bayer’s Legal Storm Intensifies as a New CFO Prepares to Tackle a $33 Billion Debt Load

Bayer navigates Roundup legal risks, a $7.25B settlement, Supreme Court decision, and a CFO transition as financial strain mounts.

The clock is ticking for Bayer on multiple fronts. The US Supreme Court heard oral arguments in the Roundup case on April 27, a $7.25 billion settlement awaits final approval, and first-quarter results are due on May 12. Meanwhile, the company is reshuffling its executive ranks, with Judith Hartmann set to take over as chief financial officer at the end of May.

The legal overhang remains the dominant concern for investors. More than 100,000 lawsuits are still outstanding, and Bayer has already paid out roughly $11 billion in settlements tied to glyphosate exposure. A Missouri judge has given preliminary approval to a further $7.25 billion deal covering both current and future claims from individuals who blame their non-Hodgkin lymphoma on the herbicide. Class members have until June 4 to opt out and pursue their own cases.

The Supreme Court hearing exposed deep divisions among the justices. Brett Kavanaugh questioned whether state lawsuits over missing cancer warnings conflict with federal rules requiring uniform herbicide labels — a line of reasoning that would benefit Bayer. Chief Justice John Roberts, by contrast, challenged whether states must wait for an EPA decision before acting on cancer risks. A ruling is expected by July.

Bayer has been ramping up its Washington presence ahead of the verdict. Lobbying spending hit just over $2 million in the first quarter of 2026, up from $1.75 million in the prior quarter. Since the start of 2024, the company has spent roughly $19.7 million on federal lobbying across nine quarters. The latest disclosure report reveals a shift in strategy: rather than broadly monitoring pesticide regulations, Bayer is now targeting legislation that would create a legal shield against ongoing litigation.

The financial strain is mounting. The company expects legal settlements to consume around €5 billion this year alone, with the bulk flowing to US glyphosate cases. Free cash flow is projected to remain deeply negative, and net financial debt is forecast to climb to between €32 billion and €33 billion. The annual guidance calls for adjusted EBITDA of €9.6 billion to €10.1 billion, with revenue reaching up to €47 billion.

Hartmann steps into this challenging environment as she replaces Wolfgang Nickl. The supervisory board has also extended the contracts of CEO Bill Anderson and pharma chief Stefan Oelrich through 2029, signaling a desire for continuity. At the annual general meeting, representatives from Deka, DWS, and Union Investment praised operational progress but raised expectations. Deka’s Ingo Speich called for an open-ended review of the corporate structure, while Union Investment backs Anderson’s current strategy and opposes an OTC spin-off for now.

The pharma division remains the strongest pillar. Cancer drugs Nubeqa and Kerendia together grew 68% last year, outperforming management’s initial expectations. However, potential US tariffs on patented medicines and growing political pressure on pricing are forcing Bayer to explore expanding local production.

In the crop science unit, the company is pushing ahead with a long-term overhaul. Management plans to launch ten new blockbuster products over the next decade, starting with the insecticide Plenexos in Brazil this year.

The stock has taken a hit, falling nearly 9% over the past week to €36.45, though it still holds a solid gain year-to-date. All eyes are now on the May 12 quarterly report, where investors will be watching closely for signs that the pharma pipeline can sustain its momentum while the legal clouds slowly clear.