Bayer creates US glyphosate unit amid lawsuit wave

German pharmaceutical and agricultural giant Bayer is creating a distinct subsidiary named Ruveon to oversee its US glyphosate operations. The company announced this move, stating the new entity will be optimally positioned to meet the unique requirements of the US market.

Ruveon, headquartered in St. Louis, will manage all facets of the US glyphosate business, from pricing to production, while remaining a part of the broader Bayer group. This strategic separation is a key component of a five-year initiative for Bayer's Crop Science division, launched last year.

Bayer explained that as an independent unit, Ruveon can operate with greater agility, enabling it to react more effectively to the competitive landscape in the US market, which is characterized by numerous generic products. "This step today is an important milestone in implementing our five-year program," said Brian Naber, head of Crop Science for North America. "With the launch of Ruveon, we reaffirm our commitment to the glyphosate market."

The new company will be led by Alfonso Alba Ordonez. Bayer has been entangled in a wave of lawsuits in the US concerning alleged cancer risks associated with glyphosate-based herbicides, such as Roundup, following its $10 billion acquisition of US seed company Monsanto in 2018. Despite rejecting these claims, Bayer has set aside billions in provisions for settlements and future legal cases, which have significantly impacted its stock price for years.

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This step today is an important milestone in implementing our five-year program. With the launch of Ruveon, we reaffirm our commitment to the glyphosate market.