Bayer's Kerendia breakthrough lifts shares amid legal and financial struggles
Bayer's shares rose sharply after positive clinical results for its drug Kerendia, despite ongoing financial strain from litigation. The company's pharmaceutical division continues to perform well, even as legal battles over Roundup weigh on its finances. Investors are now looking ahead to key legal and regulatory decisions in 2026.
The pharmaceutical arm of Bayer reported a major breakthrough with Kerendia (finerenone). In the Phase-III FIND-CKD study, the drug significantly slowed the progression of non-diabetic chronic kidney disease (CKD). This condition affects over half of all CKD patients worldwide, regardless of the underlying cause. The trial met its primary endpoint, measuring kidney function decline over 32 months. Following this success, Bayer plans to seek expanded FDA approval, which could broaden Kerendia's market reach.
Financial challenges remain, however. The company recorded a net loss of €3.6 billion in 2025, driven largely by litigation costs. Net debt also climbed to nearly €30 billion. Legal pressures stem from ongoing lawsuits over Roundup, with a Supreme Court ruling on warning labels expected by mid-June 2026. Oral arguments for the case are set for April 1, 2026—the same day as Bayer's Annual General Meeting, where shareholders will vote on a proposed dividend.
Despite these hurdles, the stock price jumped 4.71% to €40.25 after the Kerendia results were announced. A favourable court decision, combined with the drug's progress, could ease Bayer's financial burden. The company also aims to launch ten blockbuster drugs within the next decade, potentially transforming its long-term outlook.
Bayer's next steps depend on two critical factors: the Supreme Court's Roundup ruling and regulatory approval for Kerendia. A positive outcome in both areas would reduce legal risks and unlock new revenue streams. The company's share price and financial stability may hinge on these developments in the coming months.
