FRANKFURT, August 6, 2025 — Shares in German pharmaceutical and agriculture giant Bayer tumbled nearly 5 percent on Wednesday to a one-month low, as fresh disclosures revealed that soccer transfer earnings — rather than core business performance — had inflated the company’s second-quarter results.
Bayer had previously reported better-than-expected Q2 operating income of €2.1 billion ($2.43 billion), but investor optimism soured when further detail showed part of that boost came from player transfer revenue linked to the company’s Bundesliga team, Bayer Leverkusen.
⚽ Player Transfers Raise Red Flags for Investors
Market watchers expressed disappointment upon learning that the earnings beat was not entirely rooted in Bayer’s pharmaceutical or crop science divisions.
“The detail of the beat being somewhat related to Xarelto and the sale of a footballer could be disappointing to some,” analysts at JPMorgan noted in a research note.
Media reports in June suggested that Liverpool FC had agreed to pay €136.3 million for Florian Wirtz, a star attacking midfielder for Bayer Leverkusen. However, CFO Wolfgang Nickl declined to confirm the amount or specific transaction details.
“Transfers involve comparing book value with the price received, and that leads to an extraordinary result,” Nickl said during a press briefing.
💊 Core Business: Reliance on Xarelto Raises Long-Term Concerns
Investor unease was further amplified by revelations that much of the earnings strength stemmed from the blood thinner Xarelto, rather than newer, patent-protected drugs — potentially jeopardizing long-term growth projections.
The reliance on older products is seen as a concern amid increased pressure on Bayer to rejuvenate its drug pipeline and separate from distracting business operations, such as professional sports.
🧪 Structural Shifts: Job Cuts and Roundup Woes
Bayer also disclosed new figures in its restructuring efforts:
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12,000 full-time positions eliminated since restructuring began (up from 7,000 reported earlier in 2024)
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Global workforce now stands at about 90,000 employees
The company remains entangled in costly U.S. litigation tied to allegations that its Roundup weedkiller causes cancer. Last week, Bayer added €1.2 billion to its provisions for Roundup-related lawsuits and warned that it may be forced to cease glyphosate production in the U.S. unless policymakers intervene.
Despite pressure from investors to split its business units — including a potential sale of its consumer health division or a spinoff of crop science — Bayer reiterated that it is holding off on breaking up the company.
📉 Market Reaction
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Bayer shares dropped 4.7% to a one-month low by 09:58 GMT on Wednesday.
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Investors reacted negatively to non-core revenue being a driver of financial performance.
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Long-term questions persist around litigation liabilities, drug pipeline longevity, and corporate strategy.
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