Bayer plummets 18% on the stock market after the failure of a phase III drug that it promoted

2023-11-20 18:52:25

The shares of the German chemical and pharmaceutical group Bayer They plummeted 18% this Monday after recognizing the failure of their new medicine Asundexian, in phase III of development, and which promised to increase the group’s turnover by 5,000 million euros annually. He stock market crash It reached almost 21% at some points in the session, the highest in the entire historical series, according to Reuters. In annual terms, Bayer has a stock market valuation that is 40% lower.

He selective index of the Frankfurt Stock Exchange It fell 0.11% this Monday, to 15,901.33 points. A pessimistic study on the anticoagulant drug Asundexian, which was intended to be a solution to reduce the risk of stroke, and a new legal setback in the US over glyphosate were enough to undermine any investor confidence.

The German company has decided to cancel the development of Asundexian, which shows the failure of important investments and the route must be recalculated given a lower than expected income perspective. The final results, from phase III, have failed to achieve the expected objectives, and have shown lower effects than drugs from competitors such as those from Bristol-Myers and Pfizer.

Morgan Stanley analysts highlighted “the significant negative aspect” of the announcement. JPMorgan predicts that the fall could continue into tomorrow’s session by up to 10% more. In any case, it will be the investors who ratify or reject these forecasts.

Pharmaceutical sector

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The European pharmaceutical sector is in a complex situation, pending legislative changes and increasing pressure from American and Asian competition in the development of new drugs. In the case of Germany, the situation is even more serious, as it is experiencing weak economic growth and is on the verge of recession as a result of high energy costs and greater competition for its products in international markets. The thermal car crisis also affects other sectors, such as the chemical sector.

The accusations of the carcinogenic effect of the herbicide glyphosate from Monsanto, acquired by Bayer, are an untimely burden for the German multinational. This same weekend a jury in Missouri, in the United States, has sentenced the German company to pay 1,375 million euros in compensation. And the sentences may go higher in the future.