Bayer weighs halting Roundup sales in U.S. over legal risks

Bayer has indicated that it may cease sales of its Roundup weedkiller in the U.S. unless stronger legal protections against product liability litigation are established. The company has communicated this position to U.S. lawmakers, according to financial analysts and sources familiar with the matter.

Since acquiring Roundup as part of its $63 billion Monsanto takeover in 2018, Bayer has faced substantial legal challenges. The company has already paid approximately $10 billion to settle claims alleging that Roundup’s glyphosate-based formula causes cancer. However, around 67,000 additional lawsuits remain pending, leading Bayer to allocate $5.9 billion for further legal provisions.

Bayer contends that plaintiffs should not be permitted to pursue litigation based on state regulations when the U.S. Environmental Protection Agency (EPA) and other international regulators have deemed Roundup safe for use.

In a note to investors, brokerage firm Jefferies reported that Bayer leadership made it clear in recent meetings with legislators and agricultural groups that “without regulatory clarity, [Bayer] will need to exit the business.”

Disclosing its glyphosate sales for the first time, Bayer reported that Roundup generated €2.6 billion ($2.8 billion) in revenue last year, underscoring the product’s significance to the company’s crop protection division. Despite the legal risks, Bayer has not previously suggested it might withdraw Roundup from the U.S. market. However, it did reformulate its consumer-grade products to exclude glyphosate.

Bayer is actively working to mitigate its legal exposure, aiming to “significantly contain” litigation by 2026. The company is lobbying federal and state legislators and preparing to petition the U.S. Supreme Court again for legal protections, following a failed attempt in 2022.

Bayer’s glyphosate business is now being internally separated from the rest of its crop protection division, fueling speculation about potential divestment. Crop Science division head Rodrigo Santos stated that Bayer continues to evaluate all strategic options for the business.

The company’s legal challenges have weighed heavily on its stock, along with other setbacks, including weak agricultural markets and a drug development failure in 2023. Bayer remains the sole domestic producer of glyphosate in the U.S., but American farmers also rely on cheaper imports from China to support their herbicide-resistant soy and corn crops.

As Bayer seeks regulatory support to protect its Roundup business, the company’s future in the U.S. glyphosate market remains uncertain.