Bayer Considers Withdrawing Roundup in US Due to Legal Challenges

Escalating Lawsuits Prompt Strategic Review / Reuters

Bayer, a global leader in pharmaceuticals and agriculture, is reportedly weighing the option of discontinuing sales of its widely used weedkiller Roundup in the United States as legal pressures mount over claims linking the product to cancer. The company has communicated to US lawmakers that without enhanced legal safeguards against ongoing product liability lawsuits, exiting the Roundup market might become necessary. This potential shift follows years of costly litigation stemming from the herbicide’s active ingredient, glyphosate, acquired through Bayer’s $63 billion purchase of Monsanto in 2018. With Roundup generating substantial revenue, yet burdened by billions in settlements and provisions, this decision could reshape the agricultural landscape and Bayer’s financial future. Analysts and insiders suggest that regulatory clarity is pivotal, and without it, the company may pivot away from this flagship product, leaving farmers and stakeholders to grapple with the aftermath.

The financial stakes are immense, as Bayer has already disbursed roughly $10 billion to resolve claims asserting that Roundup causes cancer, notably non-Hodgkin’s lymphoma. A backlog of approximately 67,000 unresolved cases looms, prompting Bayer to allocate an additional $5.9 billion in legal reserves. Despite these challenges, Roundup remains a lucrative asset, bringing in 2.6 billion euros, equivalent to $2.8 billion, in revenue last year, according to newly released figures. This figure highlights its status as a cornerstone of US field farming, prized for its affordability and weed control efficacy. However, the persistent legal battles have eroded profitability and investor confidence, with Bayer’s leadership signaling to lawmakers and agricultural groups that the lack of a clear regulatory framework could force a withdrawal. A source familiar with the situation emphasized that Bayer might reach a tipping point where continuing sales in the US becomes untenable, underscoring the gravity of the litigation’s impact on long-term strategy.

Legal woes trace back to conflicting scientific assessments of glyphosate’s safety. The World Health Organization’s cancer research arm classified it as a probable carcinogen in 2015, fueling plaintiff lawsuits, while the US Environmental Protection Agency has maintained it poses no significant risk. This discrepancy has left Bayer navigating a contentious legal landscape, seeking a Supreme Court ruling to preempt state-level claims or legislative action to shield against liability. Past efforts to secure such protections in states like Missouri and Iowa faltered, amplifying the urgency for federal intervention. Bayer’s management has openly explored every avenue to halt the litigation wave, a spokesperson confirmed, though specifics remain guarded. The company’s plea for regulatory certainty reflects a broader struggle to balance product viability with mounting legal exposure, a dilemma that could redefine its presence in the US agricultural sector.

Farmers, a key constituency reliant on Roundup’s cost-effective weed management, face potential upheaval if Bayer exits. Organizations like the American Farm Bureau Federation have historically championed glyphosate-based solutions, valuing their role in sustaining crop yields. While recent statements on this specific development are scarce, past farmer support suggests a likely pushback against discontinuation, given the herbicide’s entrenched role in modern agriculture. Conversely, environmental and public health advocates, such as the Center for Food Safety, have long demanded a Roundup ban, citing health risks and outdated regulatory reviews. This polarization complicates Bayer’s path forward, as it weighs farmer dependence against activist pressure and legal costs. The 2021 decision to phase out residential Roundup sales by 2023, aimed at curbing litigation, hints at a precedent for broader retreat, yet the stakes in commercial farming are markedly higher.

The market ramifications of a US withdrawal could ripple widely. Roundup’s $2.8 billion revenue underscores its dominance, and its absence might disrupt supply chains, elevate costs for alternatives, and shift competitive dynamics among agrochemical firms. Bayer’s stock has suffered, plummeting 70% since the Monsanto acquisition, with high-profile verdicts, like a $2.25 billion loss in 2024, exacerbating the decline. Analysts at Jefferies, referencing Bayer’s discussions with stakeholders, note that without a resolution, exiting remains a credible threat. The company’s leadership, under CEO Bill Anderson, is also pursuing broader turnaround plans for 2025, making the Roundup dilemma a critical piece of a larger restructuring puzzle. As Bayer navigates this crossroads, the interplay of legal, financial, and agricultural factors will determine whether Roundup endures as a US staple or fades under the weight of its controversies.

For deeper insight, historical settlements offer context: a $2 billion deal in 2021 addressed future claims, while a 2024 Missouri verdict dropped from $1.56 billion to $611 million on appeal. These figures, paired with the $5.9 billion reserved for current cases, illustrate a relentless financial drain. Bayer’s transparency in revealing glyphosate sales, coupled with its warnings to legislators, signals a strategic pivot point. Whether through judicial relief, legislative shields, or market exit, the resolution will carry lasting implications for farmers, consumers, and Bayer’s global standing. As this unfolds, the agricultural community watches closely, aware that the fate of Roundup could reshape weed control practices and economic realities across the US heartland.