Is Bayer capable of recovering from its long-standing issues with financial losses and legal battles? On March 6th, 1899, Aspirin, also known as acetylsalicylic acid, was registered at the imperial patent office in Berlin. This synthetic drug became one of the most successful medicines globally. However, as Bayer approaches Aspirin’s 125th birthday, the company is facing significant challenges. Analysts and investors are eagerly awaiting the unveiling of Bayer’s new strategy and annual results on March 5th, hoping for a solution to the company’s ongoing crises. The new CEO, Bill Anderson, is under pressure to address the company’s financial woes and potential business restructuring. With a net loss of almost €3bn ($3.2bn) and a 6% decline in sales last year, Bayer’s financial performance has been disappointing. The acquisition of Monsanto, an American agrochemical giant, in 2018 has further exacerbated Bayer’s problems, leading to a 70% decline in shareholder value. The deal has resulted in costly lawsuits related to Monsanto’s weedkiller, Roundup, with Bayer having to pay out $9.5bn in settlements and setting aside an additional $6bn for future payouts. Additionally, the acquisition has burdened Bayer with substantial debt amounting to a net €35bn. As Bayer prepares to unveil its new strategy, the company’s ability to recover from these challenges remains uncertain.
Source: www.economist.com