Bayer AG (ETR:BAYN, OTC:BAYZF), the German pharmaceutical giant, has seen its shares tank more than 20% to a near 18-year low following the failure of a key drug trial and legal challenges in the United States.
The company's experimental anticoagulant, asundexian, proved less effective than existing treatments in a critical phase III trial, leading to the termination of the study.
This was one of Bayer's most promising projects, initially estimated to generate over €5 billion in annual sales. It was also supposed to be a replacement for the Xarelto, which is threatened by patent expiry.
The trial's discontinuation, recommended by independent supervisors, adds to Bayer's existing challenges, including a struggling herbicide business, high debt, and ongoing US lawsuits over its Roundup weedkiller.
The company was recently ordered to pay $1.56 billion in a U.S. lawsuit related to Roundup.
New CEO Bill Anderson is considering a major restructuring of Bayer, which spans prescription drugs, consumer health products, and agricultural chemicals. This move aims to rejuvenate the company's flagging share price and streamline decision-making processes.
The failure of the asundexian trial is particularly impactful for Bayer's pharmaceutical unit, which had hoped to expand significantly in the US market with this drug.
At 2.57 GMT, the stock was at levels last seen in 2005, at around €33.40.