GERMANY— Bayer, the German multinational conglomerate, is facing pressure from activist investor Bluebell Capital Partners to split its three main business units and overhaul its supervisory board.
With the company’s shareholders scheduled to meet for their annual conference next week and a new CEO, Bill Anderson, set to take over in June, the pressure is mounting on Bayer to address the demands of Bluebell.
Specifically, Bluebell is calling for Bayer to separate its pharmaceutical and crop science units, as well as divest from its consumer health division, following in the footsteps of several other pharmaceutical companies in recent years.
Furthermore, the London-based firm is also demanding that four supervisory board members, whose terms end next year, be replaced by independent candidates, further shaking up the company’s leadership.
This push for change comes at a time when Bayer is still dealing with the aftermath of its acquisition of Monsanto, which has faced legal challenges and controversy over the use of its glyphosate-based herbicide, Roundup.
The company has also been impacted by the COVID-19 pandemic, with disruptions to its supply chain and manufacturing operations.
Bayer has already taken steps to address some of these issues, including reaching a settlement agreement with plaintiffs in the Roundup lawsuits, which is expected to cost the company billions of dollars.
Additionally, the company has been working to streamline its operations, announcing plans to cut 12,000 jobs by the end of 2021 and sell off its animal health division.
However, the demands of Bluebell Capital Partners suggest that more drastic measures may be necessary for Bayer to stay competitive in the pharmaceutical and agrochemical industries.
As the company prepares for its annual conference, all eyes will be on whether or not Bayer’s leadership will heed the calls for change and implement the reforms demanded by its shareholders.
While facing pressure to restructure its business units and leadership, Bayer has simultaneously been expanding its efforts in the field of cell and gene therapy.
In 2020, the company made a significant move in this space with the acquisition of Asklepios, a leading adeno-associated virus specialist, for US$2 billion.
This acquisition has enabled Bayer to strengthen its capabilities in gene therapy, which involves using modified genes to treat or prevent disease.
In addition to this acquisition, Bayer has also launched its own cell and gene therapy platform, which aims to develop and commercialize new treatments for a range of diseases.
The company has invested millions of dollars into promising gene therapy players such as Metagenomi and Senti Bio, in order to advance its research in this field.
The investment in Metagenomi is particularly noteworthy, as the company has developed a novel gene editing technology called “Targeted Integration Directed by Endonuclease” (TIDE).
This technology has the potential to improve the efficiency and safety of gene therapies by allowing for more precise editing of genes.
Bayer’s investment in Metagenomi could lead to the development of more effective gene therapies for a variety of diseases.
Similarly, the investment in Senti Bio, a company that is developing gene circuits to treat cancer and other diseases, is also a strategic move for Bayer.
This investment is aimed at leveraging Senti Bio’s expertise in gene circuit engineering to develop new treatments that are more targeted and effective.
With its recent acquisitions and partnerships, Bayer is positioning itself as a major player in the development of new gene therapies that have the potential to revolutionize the treatment of a wide range of diseases.
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