Germany-headquartered Bayer (ETR: BAYN) announced the termination of a late-stage trial for its antithrombotic candidate asundexian. Asundexian, once considered a potential blockbuster, was outperformed by the standard of care in preventing stroke and systemic embolism in patients with atrial fibrillation, the most lucrative indication for the drug, with an estimated peak sales potential of EUR 4 billion. Despite the setback, the experimental drug will continue its development path in stroke prevention, albeit with a diminished market value and reduced likelihood of offsetting the generic competition for Bayer’s top-selling products.
Legal Setbacks and Bayer’s Market Response
The trial’s discontinuation follows Bayer’s recent legal challenges in the US, where its glyphosate-based herbicide Roundup is involved. A court ordered the company to pay over USD 1.5 billion in compensation to three cancer victims. While Bayer plans to appeal, this case is one of many lawsuits related to the controversial weed killer.
Stock Decline and CEO’s Strategy Shift
The series of bad news caused Bayer’s stock to plummet by as much as 19%, reaching market capitalization levels not seen in a decade. In response, CEO Bill Anderson outlined a low-risk strategy during a shareholders’ call, focusing on cost reduction and the company’s early-stage pipeline, which includes promising drug candidates.- Flcube.com
