By Nina Kienle
Shares in Bayer rose on Monday after the U.S. Supreme Court said it would take an appeal from the German conglomerate, agreeing to hear its challenge to litigation which claims its flagship weedkiller Roundup causes cancer.
In European morning trading, shares trade 7% higher at 44.42 euros.
Bayer maintains that Roundup is safe to use and is arguing that companies shouldn't be sued under state laws for complying with federal warning label requirements.
The pharmaceutical and biotechnology company has been involved in the litigation surrounding Roundup since its acquisition of Monsanto in 2018, the company that developed the herbicide used in the weedkiller.
The litigation has depressed Bayer's stock price for nearly a decade and the hearing could help lead to the dismissal of thousands of cases brought against it.
"The decision by the court also improves Bayer's negotiating position should it wish to pursue a settlement," Jefferies analysts said in a note to clients.
This is Bayer's second shot at taking the litigation to the highest court. A ruling is expected by early July.
Write to Nina Kienle at nina.kienle@wsj.com
(END) Dow Jones Newswires
01-19-26 0421ET
