However, BAYZF stock seems to be bottoming out, having traded sideways since mid-2020.ĭata by YCharts A Restructuring of Bayer Is In The Cardsīayer's undervaluation has also caught the attention of activist shareholders such as Jeff Uben's Inclusive Capital, Bluebell Capital Partners or Elliott Management. The share price has been receiving a beating since the takeover and Bayer's share price fell by 50%. Shareholders voted at the 2019 shareholder meeting against the board and Singapore's sovereign wealth fund Temasek called in 2022 for the removal of CEO Baumann. The takeover and its subsequent problems severely impaired the trust in Bayer's management. The takeover led to a series of multi-billion-dollar litigations against Bayer because of Monsanto's Roundup product allegedly causing cancer. The acquisition was forced upon Bayer by its then-new CEO Werner Baumann. The toxic Monsanto takeoverīayer took over US-based crop science competitor Monsanto for $60 billion in 2017 in what has turned out to be a literally toxic deal. Its gross profits stayed stable at around 62% during last year even after the run up in input prices, which shows evidence of pricing power. The company is a stable, profitable and cash-generative business with operating margins between 16-17% over the last 3 years despite all the global turbulences. The company's R&D efforts continue to focus on addressing some of the world's most pressing health challenges, such as cancer, cardiovascular disease, and infectious diseases. The crop science segment provides agricultural products and services to farmers and other agricultural businesses.īayer has a long history of innovation, with notable contributions to the development of aspirin, the world's first mass-produced synthetic dye, and the first oral contraceptive pill. The pharmaceuticals segment focuses on developing and manufacturing prescription drugs, while the consumer health segment produces over-the-counter products for consumers. The company was founded in 1863 and has grown to become one of the largest pharmaceutical companies in the world.īayer operates in three main business segments: pharmaceuticals, consumer health, and crop science. About Bayerīayer AG is a $50 billion multinational pharmaceutical and life sciences company headquartered in Leverkusen, Germany. Investors are further pushing for a breakup of the company to unlock value from what is a typical conglomerate-discount-situation. Bayer has been a target of investor activism lately, which forced the removal of the distrusted CEO Baumann. Market" - shares in Bayer trade at a discount of at least 20% to its peers and the historically low trading multiples further present an attractive entry point for opportune investors. JJ Gouin/iStock via Getty Images Investment Thesisīayer AG ( OTCPK:BAYZF) ( OTCPK:BAYRY) is undervalued by "Mr.
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