Bayer has performed better than expected in the previous quarter thanks to strong demand for medicines. The German chemical company is therefore raising its expectations for the second half of the year, even though it is struggling with high costs and compensation payments due to the controversial weed killer Roundup.
The pharmaceutical company is raising its revenue and profit forecast for 2025. Bayer CEO Bill Anderson says that the new forecast takes into account the “currently expected financial effects of the latest geopolitical developments.” These may turn out badly for the company, but Anderson still predicts more revenue from rising sales.
Bayer mainly saw sales of its popular eye medication and blood thinners rise. The pharmaceutical division also benefited from the new cancer drug Nubeqa and the kidney treatment Kerendia. The agricultural pesticides division also performed better than expected, despite the lack of revenue growth for Roundup.
The group has been involved in lawsuits surrounding Roundup since the takeover of Monsanto in 2018, which contains the controversial ingredient glyphosate. Although the company has been successful in recent cases, it has also lost cases in which billions of euros in damages were claimed.
Currently, 61,000 claims are still open from plaintiffs who claim to have contracted cancer from Roundup. Bayer states that the product is safe. Due to the costs of the lawsuits, Bayer suffered a net loss of 199 million euros in the second quarter, on a turnover of 10.7 billion euros.