Bayer Forges Ahead with AI Drug Discovery and Eye-Care Deal Even as Legal and Trade Storms Loom
Published on 06/25/2026 at 14:44 | Redaktion boerse-global.de
Bayer has wrapped a brace of strategic moves — an artificial-intelligence partnership for drug discovery, the full integration of an ophthalmology specialist, and the closure of a long-running OECD complaint — offering a glimpse of its pipeline ambitions beneath a heavy cloud of litigation and trade uncertainty. Investors took notice, pushing the stock more than seven percent higher over the past week. On Wednesday, shares closed at €39.88, roughly nine percent above their 200-day moving average but still about 20 percent shy of the 52-week high of €49.93.
The Leverkusen-based group announced a collaboration with US biotech Iambic Therapeutics aimed at speeding up the identification of small-molecule drugs. Iambic brings two proprietary platforms – Enchant and NeuralPLexer – to the table, designed to target molecules against biological targets that have historically been difficult to address. The rationale is clear: traditional drug development can take up to 15 years and cost roughly $2.6 billion, with more than 90 percent of candidates failing in clinical trials. Bayer hopes AI-driven optimisation can improve those odds. Financial terms were not disclosed, though Iambic receives an upfront payment plus milestone and royalty payments.
On June 17, Bayer also completed the acquisition of Perfuse Therapeutics and now holds full rights to PER-001, an intravitreal implant in phase II trials for glaucoma and diabetic retinopathy. The deal has a total potential value of up to $2.45 billion, with an upfront payment of $300 million. Perfuse adds a novel drug class to Bayer’s existing ophthalmology portfolio, which already includes Eylea.
Separately, the OECD National Contact Point closed a complaint against Bayer brought by several NGOs over health damages allegedly linked to glyphosate and genetically modified seeds in South America. The complainants declined an offered mediation, prompting the authority to shut the file.
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Yet these positive signals do little to mask the strain on Bayer’s balance sheet. The company expects legal outflows of roughly €5 billion in 2026 alone. Net debt stands at approximately €33 billion, and management forecasts free cash flow of between negative €1.5 billion and negative €2.5 billion for the full year.
The most consequential legal event remains the US Supreme Court’s impending decision in the Durnell case, which could arrive any day. The justices are considering whether state law can override a safety clearance from the federal Environmental Protection Agency. A victory for Bayer would effectively end the roughly 65,000 outstanding glyphosate lawsuits; a loss would keep the wave of claims rolling. Analysts expect the ruling within the week.
Alongside the courtroom drama, Bayer faces a new trade threat from Washington. The US Trade Representative is probing German drug pricing policies after Berlin proposed an additional mandatory rebate on patented medicines starting in early 2027. The discount begins at 3.5 percent and could climb to 20 percent by 2030. A public comment period opened on June 25, with a hearing scheduled for the autumn. From July 31, certain pharmaceutical companies will face initial US tariffs, rising to 20 percent even if production moves to America, and potentially reaching 100 percent after four years. US officials point to a tariff-free agreement with the UK guaranteed until early 2029, putting German firms like Bayer at a distinct disadvantage.
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On the operational front, there was a bright spot: the FDA approved Bayer’s contrast agent Ambelvist in mid-June. The product is used in MRI scans to highlight lesions in the central nervous system and delivers only 0.04 millimols of gadolinium per kilogram of body weight — roughly 60 percent less than conventional agents. Ambelvist already has marketing approval in Japan.
With the Supreme Court decision imminent and the tariff clock ticking, Bayer’s second-quarter results will provide the next big test of whether the company can chip away at its debt mountain. An updated net debt outlook is expected alongside the figures.
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