Latest Developments in Health Care Market Talks

The German pharmaceutical-and-agricultural group Bayer is facing several challenges that require immediate action, according to Jefferies analysts. A halt to a late-stage clinical trial of experimental cardiovascular drug asundexian has increased financial risk for the company, while declining share prices have heightened sensitivity to rising provisions and potential trial losses in a legal battle over its Roundup weedkiller. This suggests that Bayer may need to sell assets and scrap dividends in order to buy time. However, this may not be enough to support the large-scale investments needed in its pharma business, Jefferies cautions. As a result, the firm has cut its recommendation on the stock from buy to hold. Despite Monday’s heavy losses, shares are currently trading 0.3% higher following the announcement. (adria.calatayud@dowjones.com) Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8