Shares of the German chemical and pharmaceutical group Bayer fell 18% this Monday after it admitted the failure of its new drug AsundexianIII of development phase and has promised to increase the group’s turnover by 5,000 million euros annually. HE stock market crash It reached nearly 21% at some points in the session, the highest level in the entire historical series, according to Reuters. On an annual basis, Bayer’s stock market valuation is 40% lower.
HE Selective index of the Frankfurt Stock Exchange This Monday it fell 0.11% to 15,901.33 points. A pessimistic study of the anticoagulant drug Asundexian, intended as a solution to reduce stroke risk, and a new regulatory setback over glyphosate in the US were enough to shake investors’ confidence.
The German company’s decision to cancel Asundexian’s project indicates that significant investments have failed and the route needs to be recalculated, given the prospect of lower than expected revenues. The final results of Phase III fell short of expected targets and showed lower efficacy than rival drugs such as Bristol-Myers and Pfizer.
Morgan Stanley analysts emphasized that ““major negative aspect” of advertising. JPMorgan predicts that the decline could continue by up to 10% further in tomorrow’s session. In any case, it will be investors who will confirm or reject these predictions.
pharmaceutical industry
The European pharmaceutical industry is in a complex situation, with regulatory changes expected and increasing pressure from American and Asian competition in the development of new medicines. In the case of Germany, the situation is even more serious; It is experiencing weak economic growth and is on the verge of recession due to high energy costs and increasing competition for its products in international markets. The thermal car crisis also affects other sectors, such as the chemical industry.
Accusations of the carcinogenic effects of the herbicide glyphosate from Monsanto, which was acquired by Bayer, represent an untimely burden for the German multinational company. The same weekend, a jury in Missouri, United States, sentenced the German company to pay 1.375 million euros in damages. And in the future the sentences may rise even higher.