Bayer is facing multiple challenges that are hastening the need to consider strategic options, according to Jefferies analysts. The halt of a late-stage clinical trial of experimental cardiovascular drug asundexian has pushed financial risk to the edge, while share-price falls have increased sensitivity to rising provisions and potential trial losses in a legal battle over its Roundup weedkiller. This suggests that the German pharmaceutical-and-agricultural group may need to sell assets and scrap dividends in order to buy time. However, this may not be enough to enable large-scale investments needed in its pharma business, Jefferies says. As a result, the firm has cut its recommendation on the stock from buy to hold. Despite this, shares are trading 0.3% higher following Monday’s heavy losses. (adria.calatayud@dowjones.com) Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8.
Wednesday, November 29, 2023