As Bayer AG tries to draw a line under costly Roundup herbicide litigation in the US this year, shareholders are using its annual general meeting to make clear that the stakes are higher than ever — including for Chief Executive Officer Bill Anderson.
Anderson told investors Friday that the company has made “great progress” over the past two years, pointing to a stronger drug pipeline and advances in efforts to contain the legal fallout from its $63 billion Monsanto acquisition in 2018. But he also cautioned that “the work isn’t complete. Yet.”
“This remains an active situation, with important milestones and decisions in the weeks ahead,” Anderson said during the virtual AGM. “We continue to take it one day at a time and remain prepared for all scenarios.”
After taking over as CEO in mid-2023, Anderson pledged to “significantly contain” the mass litigation tied to Roundup by the end of 2026. Bayer is waiting on a US Supreme Court hearing on Monday, with a decision expected in June, and a ruling in its favor could undermine a key legal theory underpinning many of the claims.
It has proposed a $7.25 billion settlement aimed at resolving most current and future lawsuits that say Roundup causes cancer — an allegation the company rejects.
“Bayer has undoubtedly made progress in reducing its legal risks in recent quarters,” said Ingo Speich of Deka Investment, a Bayer investor, according to the text of his AGM address. “But this is far from a breakthrough. More will be needed.”
Beyond a favorable court ruling, Bayer must also secure broad participation in its settlement. Claimants have until June 4 to opt in or out, and Anderson has said acceptance must be “very close” to 100% for the deal to hold.
“2026 will be the year of decision — not just for Bayer, but for you as well,” Speich said, referring to the CEO.
Bayer’s shares have risen more than 70% over the past 12 months, reflecting renewed investor optimism. At the same time, it expects free cash flow this year to be negative due to settlement-related payouts, after already spending at least $10 billion on litigation.
Beyond its legal troubles, Bayer is facing generic competition to its blockbuster blood thinner Xarelto and eye medicine Eylea.
The company expects its pharmaceutical unit to return to growth in 2027, supported by demand for kidney drug Kerendia and cancer therapy Nubeqa. New products such as menopause treatment Lynkuet and the potential launch of stroke drug Asundexian are expected to contribute to growth.
Anderson is also reshaping the company by cutting management layers and eliminating thousand of jobs, aiming to make Bayer more efficient and faster in developing new medicines and crop products.
Investors are also pressing for a review of Bayer’s structure, an issue Anderson has said the company will address. A favorable Supreme Court ruling could intensify calls for disposals or a breakup.
After years under pressure, “the company cannot settle for cosmetic adjustments once some relief is achieved,” Speich said.
Photo: A sign at the Bayer AG pharmaceutical campus in Berlin, Germany. Photographer: Krisztian Bocsi/Bloomberg
Copyright 2026 Bloomberg.
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