Bayer's Pharma Engine Keeps Firing Even as the Roundup Reckoning Waits on a Missouri Judge
Published on 09/18/2026 at 18:02 | Editorial boerse-global.de
Two fresh FDA green lights have landed in Bayer's lap within days of each other, yet neither has been enough to keep the stock from drifting lower as investors fixate on a courtroom in Missouri and a broader pharma sector gripped by US pricing and patent-cliff anxiety.
The most recent approval covers Kerendia, the brand name for finerenone, which has now been cleared for patients battling chronic kidney disease alongside type 1 diabetes. It marks the third indication for the molecule, following its 2021 debut in type 2 diabetes and last year's expansion into heart failure. Bayer is calling it the first new therapeutic option in three decades for this particular patient group, a claim underpinned by Phase III data from the FINE-ONE trial, where urinary albumin excretion fell by 25% within six months.
Strategically, stacking indications matters. Bayer's pharmaceutical division needs fresh growth drivers to plug the revenue gap left by older products losing patent protection, and each additional approved use widens the addressable market for the drug.
Separately, the company secured accelerated FDA clearance for Sevabertinib, marketed as Hyrnuo, as a first-line treatment for adults with locally advanced or metastatic non-squamous non-small cell lung cancer. The nod hinges on an activating HER2/ERBB2 TKD mutation. This subtype of lung cancer has long been considered difficult to treat, with few options available, and the accelerated pathway lets Bayer bring the drug to the US market before confirmatory trials are fully wrapped up.
Market Reaction Stays Muted
Despite the twin regulatory wins, the stock slipped 2.6% on Friday to EUR 47.84, down from Thursday's close of EUR 49.11. The pullback reflects a sector-wide mood in which investors are paying more attention to US drug pricing regulation and expiring patents than to individual company announcements. The shares are now trading just below their 50-day moving average of EUR 48.39, a sign of near-term softness, though the gap to the 200-day average remains a comfortable 13% to the upside.
Should investors sell immediately? Or is it worth buying Bayer?
Zooming out, the picture is brighter. Bayer is up 29% year-to-date and 74% over twelve months. The stock sits 11% below its 52-week high of EUR 53.86, touched in early July.
The Legal Overhang That Won't Budge
Weighing on sentiment is the sprawling glyphosate litigation. Monsanto, Bayer's subsidiary, appeared before a Missouri court last Monday seeking approval of a $7.25 billion settlement designed to resolve a chunk of the cancer claims tied to Roundup. According to Reuters, Bayer faces roughly 65,000 lawsuits across US state and federal courts. The court is currently reviewing the validity of opt-out requests, with a decision expected before year-end. Since that Monday hearing, the stock has shed around 3.1%.
A finalized settlement would make a large portion of existing and future glyphosate claims manageable and remove one of the biggest uncertainties hanging over the company — but that judicial sign-off has yet to materialize.
Wall Street Still Sees Room to Run
Analysts remain constructive. Barclays raised its price target on September 8 from EUR 60 to EUR 70 while keeping an "Overweight" rating. Deutsche Bank Research followed a day later, reiterating its buy recommendation with a EUR 60 target. Both imply meaningful upside from current levels.
Operational Housekeeping Continues
Away from the courtroom and the clinic, Bayer is overhauling its global planning processes. The company intends to rebuild its supply chains around Unison Planning software with deeper AI integration, aiming for faster and better-informed decisions. Further details are slated for October 6 at the Gartner Supply Chain Planning Summit in London — a reminder that Bayer is working on operational efficiency alongside its pharmaceutical pipeline.
For investors, the setup remains a tug-of-war. The pharma arm keeps delivering — Kerendia's third approval and Hyrnuo's accelerated entry both strengthen the future revenue base — while the unresolved glyphosate question and a regulatory climate clouded by US pricing pressure continue to cap the valuation.
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