Bayer Names CEO to Replace Baumann

Roundup story ends badly for the creator of it. 

"BERLIN -- Bayer AG said it is replacing its embattled chief executive, Werner Baumann, with Bill Anderson, a 56-year-old American pharmaceuticals executive.

Mr. Baumann, 60 years old, has served as CEO since 2016 after previously serving as finance chief. His current term was due to expire in April 2024. He led the company's acquisition of Monsanto for $63 billion in 2018, which left Bayer mired in litigation and saddled with about $43 billion in debt.

Despite efforts to work through the Monsanto legal legacy, Bayer still faces considerable risk from its exposure to litigation for glyphosate, which is the active ingredient used in its Roundup weedkiller. Bayer faces thousands of lawsuits claiming that glyphosate causes cancer, despite having won at least six of the latest court cases in which it argued against those claims.

The continued legal troubles and growing investor doubts about Bayer's strategy and its corporate structure attracted activist funds and led some investors to begin calling for Mr. Baumann's departure. Inclusive Capital Partners, led by Jeff Ubben, and Bluebell Capital Partners, a European activist investor, disclosed last month that they had built stakes in Bayer. Some German shareholders also had expressed frustration over Mr. Baumann's inability to disentangle Bayer from the Monsanto debacle.

Some investors are calling for a breakup of the pharmaceutical and agricultural-science business into separate companies.

Bayer said it chose Mr. Anderson to succeed Mr. Baumann "after a thorough selection process" that began in the middle of last year. Bayer said Mr. Baumann would work closely with his successor to "ensure a smooth transition" before retiring at the end of May.

Mr. Anderson, a chemical engineer, is set to join Bayer's management board in April and take control as CEO in June. His most recent job was CEO of Roche Holding AG's pharmaceutical division until leaving at the end of December. 

"Bill has an outstanding track record of building strong product pipelines and turning biotech breakthroughs into products," Bayer Chairman Norbert Winkeljohann said.

Bayer has set aside about $16 billion for Roundup settlements, the company has said.

Monsanto developed Roundup as well as genetically engineered crops designed to withstand the herbicide. Bayer lost the first trial over Roundup's alleged cancer risk in August 2018. It has more recently won six consecutive trial victories.

Bayer maintains that Roundup is safe to use and is still popular with commercial farmers who have largely been undeterred by the litigation.

The company has cited regulatory reviews by the U.S. Environmental Protection Agency and other regulators that have determined that Roundup doesn't pose a cancer risk.

Bayer and rival seed and chemical maker Corteva Inc. have reported rising sales of crop seeds, pesticides and other agricultural products over the past year as high prices for crops buoy U.S. farmers." [1]

1.  Business News: Bayer Names CEO to Replace Baumann
Boston, William; Thomas, Patrick.  Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 09 Feb 2023: B.3.