Bayer shares face headwinds: Financial expert warns of long-term losses and announces US expansion

Bayer shares face headwinds: Financial expert warns of long-term losses and announces US expansion

According to a report by www.boerse.de,

Bayer is considered one of the most traded German stocks, although investors have suffered significant losses over the long term. According to a report by Boerse.de, the stock has lost an average of 10% per year over the last ten years. In addition, there are further challenges that indicate that the agrochemical company will continue to face headwinds in the future.

The patents for Bayer's blockbuster drugs Xarelto and Eylea are about to expire, meaning the company is looking for new drugs with similar potential. Although Bayer is trying to close the billion-dollar hole, the study setback with the hopeful Asundexian has diminished the hope of a new blockbuster. The value of Bayer shares fell by almost 20 percent and has barely recovered since then.

In addition, Bayer's agricultural division is under pressure due to the wave of glyphosate lawsuits in the USA. The company has set aside $16 billion in provisions, but it is unclear whether this amount will be enough. Despite these crises, Bayer announced new investments in the US and continues to see opportunities for certain drugs, although many analysts are skeptical about Bayer's growth prospects and have downgraded their price targets for the stock.

Given this information, Bayer faces major challenges that could have a negative impact on the stock market and the financial industry. Investors may become more cautious and reconsider their investments given the uncertainties surrounding the success of new drugs and the legal burdens in the US. This could lead to a decline in Bayer's share price and general caution in the market.