Bayer Hands Off Stivarga to Grünenthal as Pipeline Wins Offset Courtroom Drag
Published on 09/22/2026 at 03:41 | Editorial boerse-global.de
Bayer has struck a deal to offload its cancer drug Stivarga to Grünenthal GmbH, with the transaction carrying a total value of up to EUR 375 million. The agreement, confirmed today, transfers worldwide rights to the oncology treatment and marks the latest move in the Leverkusen group's effort to streamline its pharmaceutical portfolio. Closing is expected between late 2026 and early 2027.
The timing reflects a hard commercial reality. Stivarga loses exclusivity in the European Union in 2029 and in the United States a year later, and generic competition would have eroded its revenue regardless of who owned it. By selling now, Bayer converts a predictable but shrinking earnings stream into an upfront cash payment while pushing the late-stage marketing risk onto the buyer.
That calculus shows up clearly in the numbers. Stivarga generated EUR 338 million in revenue during the 2025 financial year, roughly a quarter less than the prior year, and brought in EUR 148 million in the first half of 2026. Bayer did not disclose separate profit figures for the drug. Grünenthal, for its part, expects the product to contribute up to around EUR 100 million in earnings before interest, taxes, depreciation and amortization in 2027 — a reminder of how much earning power remains in the asset even as its sales base contracts.
The divestment is not an isolated step. Bayer already agreed this summer with investor Apollo on a minority stake in a new entity housing its reversible long-term contraception business, a deal that injected EUR 3 billion in additional equity. Together, the two transactions widen the group's financial room to maneuver, giving management scope to service existing obligations and redirect capital toward growth areas. Whether that freed-up cash can be reinvested profitably will determine if the slimming-down becomes a foundation for a lasting operational recovery or simply leaves a gap in cash flow.
Regulatory Wins Broaden the Pipeline
While the portfolio is being trimmed at the older end, Bayer's development arm has been logging approvals that point to where future revenue is meant to come from.
Should investors sell immediately? Or is it worth buying Bayer?
On 9 September, the US Food and Drug Administration granted accelerated approval to the targeted therapy Sevabertinib as a first-line treatment for adults with HER2-mutated, locally advanced or metastatic non-squamous non-small cell lung cancer. Days earlier, on the preceding Friday, the agency cleared Finerenon for a new indication covering chronic kidney disease in patients with type 1 diabetes. Such label extensions shore up the market position of established compounds and widen the base in chronic disease categories.
Competition, however, is not standing still. On Monday, the European Commission granted rival Roche approval for its eye treatment Susvimo, aimed at wet age-related macular degeneration. The system relies on a refillable implant requiring only two refills per year and is designed to replace frequent injections into the eye. Innovations of this kind intensify the contest for share in lucrative therapeutic areas and raise the bar for Bayer's own pipeline.
Roundup Settlement Still Awaits a Judge
Hanging over the whole story are the legal battles that have weighed on Bayer's valuation for years. Roughly a week ago, the group's Monsanto subsidiary asked a Missouri court to approve a proposed settlement worth USD 7.25 billion. According to Reuters, the deal is intended to resolve around 65,000 lawsuits alleging cancer risks linked to the weedkiller Roundup. Whether the proposal delivers final legal peace depends on judicial confirmation, and every procedural twist in the litigation draws close attention from the market.
Market Reaction and the Chart Level That Matters
Investors greeted the Stivarga sale with modest gains. The Bayer share rose 2.1% and closed at EUR 49.04. Since the start of the year, the stock is up 32%, a run that suggests shareholders see the company cleaning up its structures well beyond the courtroom.
The broader technical picture remains intact for now. As long as the price holds above its 200-day moving average of EUR 42.51, the prevailing uptrend stays formally in place. A shift in sentiment triggered by the lost operating earnings, should the shares slip below that threshold, would risk a reassessment of the medium-term margin outlook.
The next concrete catalyst is the legal and operational completion of the Stivarga sale to Grünenthal. Only once the deal is finalized will the funds actually flow and provide definitive clarity on the portfolio's new earnings structure.
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