Bayer Threatens to Cease Roundup Sales Over Legal Challenges

Bayer may stop selling its Roundup weedkiller unless U.S. lawmakers enhance legal protections against liability claims. The company faces ongoing litigation despite regulatory approval of its safety. With revenue of €2.6 billion from glyphosate, Bayer seeks to manage legal challenges while considering future business strategy changes.

Bayer is considering halting sales of its Roundup weedkiller in the U.S. unless stronger legal protections are provided against liability claims, according to sources close to the matter. The company has already spent around $10 billion settling claims that its glyphosate-based product causes cancer, and tens of thousands of cases remain unsettled.

The German company's stance is that plaintiffs shouldn't sue under state laws when the U.S. Environmental Protection Agency has deemed the product safe, a classification shared by other international regulators. "Without regulatory clarity, Bayer will need to exit the business," stated analysts in a recent Jefferies brokerage note.

Despite not previously threatening to withdraw the product from the U.S. market, Bayer is exploring all avenues, including Supreme Court petitions for legal protection. Having disclosed glyphosate's 2022 revenue at €2.6 billion, Bayer considers separating this business unit to address stock pressures and market conditions.

(With inputs from agencies.)