Bayer Offloads Stivarga to Grünenthal as Missouri Judge Weighs $7.25 Billion Roundup Deal

Bayer hands cancer drug Stivarga to Grünenthal in a deal worth up to EUR 375 million, as a USD 7.25 billion Roundup settlement ruling stays pending.

Bayer has agreed to hand its cancer drug Stivarga to Aachen-based Grünenthal, a transaction unveiled on 21 September that will bring the Leverkusen group as much as EUR 375 million. The disposal is a deliberate exit from a mature medicine ahead of the patent cliff, and it lands at a moment when investors are focused on two rather different questions: how quickly Bayer can close its long-running glyphosate litigation in the United States, and whether the proceeds of portfolio pruning can fund the next generation of treatments.

Regorafenib, the active ingredient behind Stivarga, loses exclusivity in the European Union in 2029 and in the US in 2030, according to company guidance. Grünenthal expects the acquired product to contribute up to roughly EUR 100 million to earnings before interest, taxes, depreciation and amortisation in 2027.

The sale lets Bayer monetise an established asset early while steering research and development capacity toward newer compounds. It follows other portfolio decisions, including the 6 May agreement to acquire US biotech Perfuse Therapeutics for a USD 300 million upfront payment and total consideration of as much as USD 2.45 billion.

A Legal Overhang With a Price Tag

Far larger than any single product sale is the Roundup settlement that has dominated the Bayer investment case for years. Monsanto has asked a judge in Missouri to approve a USD 7.25 billion package designed to resolve nearly all existing and future US cancer claims tied to the weedkiller. The hearing on final approval took place about two weeks ago; a ruling is still pending. Reuters continues to describe the settlement as the single biggest burden on the company.

A confirmed deal would put a reliable ceiling on the unpredictable risk posed by thousands of individual lawsuits. Until the court rules, the legal question remains the dominant factor in how the shares are valued. Since the hearing, the stock has added 3.0%.

Analysts Look Past the Courtroom

Barclays raised its price target to EUR 70.00 on 8 September while keeping a positive rating, implying meaningful upside if the legal knot is untied. Deutsche Bank reaffirmed its EUR 60.00 target on 10 September, and other institutional houses published targets above the current quote in early September.

How fast the remaining uncertainties clear is central to that recovery potential. While approval is outstanding, the market prices in continued caution; a durable end to the disputes could open the door to a re-rating.

Steady Operations Underpin the Story

The strategic moves are unfolding against a stabilised operating backdrop. Bayer posted adjusted EBITDA of EUR 2.144 billion in the second quarter of 2026, up 1.9% year on year, with the Crop Science agricultural division lifting earnings 30.2% to EUR 902 million. Management is holding to full-year 2026 guidance of adjusted EBITDA between EUR 9.6 billion and EUR 10.1 billion and core earnings per share of EUR 4.30 to EUR 4.90.

The shares closed Friday at EUR 50.20, 6.8% below their 52-week high of EUR 53.86, yet up 36% since the start of the year.