Bayer to Appeal US Farmer’s $265 Million Damages Award

Farmer Bill Bader sued Bayer and chemical producer BASF, arguing their weedkiller had drifted onto his trees from nearby farms.


German agrochemicals giant Bayer announced on Sunday it would appeal a US jury’s $265 million (€245 million) award to a Missouri farmer who said the company’s dicamba herbicide had devastated his peach orchards.

Farmer Bill Bader sued Bayer and chemical producer BASF, arguing their weedkiller had drifted onto his trees from nearby farms. The jury handed him $15 million in compensation and $250 million in punitive damages.

“We are disappointed with the jury’s verdict,” Bayer said in a statement, adding that it would launch an appeal. BASF also said it would appeal. Both companies said their dicamba herbicides are safe when used as per instructions.

“We believe the evidence presented at trial demonstrated that Monsanto’s products were not responsible for the losses sought in this lawsuit and we look forward to appealing,” Bayer said.

Founded in Wuppertal in western Germany in 1863, Bayer is one of the biggest pharmaceutical companies in the world.

Also read: India’s Intense Agri Drive After 1947 Didn’t Stop Crop Diversification: Study

Bayern faces multiple fines

The $265 million damages award is the first of more than 140 dicamba cases to come to trial.

The award is separate from the multi-billion-dollar litigation Bayer is trying to settle over the Roundup weedkiller made by US agrochemical firm Monsanto.

Monsanto produced both Roundup and dicamba. Bayern, which acquired Monsanto for $63 billion in 2018, is being sued over both products. BASF makes its own dicamba-based herbicide.

The US Environmental Protection Agency imposed a number of restrictions on the use of dicamba in November 2018 after concerns were raised about the possible destruction of crops surrounding those it was being applied to.

Bayer’s genetically engineered soy seeds are designed to be resistant to the herbicide.

The article was originally published on DWYou can read it here

 

Bayer Shares Drop to 7 Year Low After US Jury Awards Couple $2 Billion

Bayer said in a statement on Monday it was disappointed with the verdict and would appeal.

Frankfurt: Bayer shares fell by as much as 5% on Tuesday after a California couple were awarded more than $2 billion in the largest US jury penalty over allegations its Roundup weed killer causes cancer.

The stock closed at its lowest level in almost seven years, even though the punitive damages award is likely to be reduced due to US Supreme Court rulings that limit the ratio of punitive to compensatory damages to 9:1.

The jury set the total punitive damages at $2 billion and added $55 million in compensatory pay, concluding that Roundup – based on herbicide glyphosate – had been defectively designed, and that the company failed to warn of the herbicide’s alleged cancer risk.

The shares closed about 2% lower at 55.33 euros.

Bayer said in a statement on Monday it was disappointed with the verdict and would appeal. A spokesman called the jury’s decision “excessive and unjustifiable”.

It was the third consecutive US jury verdict against the company in litigation over the chemical, which Bayer acquired as part of its $63 billion purchase of Monsanto last year.

“Clearly we anticipate that much of the punitive damages of $2 billion would likely be significantly reduced on appeal,” JP Morgan analysts said in a note.

“However, the level of compensatory damages is still likely to be somewhat of a concern to the market given the level is above the Hardeman case,” they added, referring to $5 million in compensatory damages awarded to a plaintiff in a previous case.

The brokerage said the litigation slashed its valuation of the company by 5 billion euros ($5.6 billion) but it would take until mid-2020 for more cases and a couple of appeal decisions to provide greater clarity.

Bayer, inventor of Aspirin and maker of stroke prevention drug Xarelto and Yasmin birth control pills, faces U.S. lawsuits from more than 13,400 plaintiffs over the herbicide’s alleged cancer risk.

The group’s market value has fallen below what Bayer paid for Monsanto after shedding about 40 billion euros since the first jury verdict last August.

In further fallout from the takeover, Bayer said on Monday that Monsanto, which is being investigated by French prosecutors for compiling files of influential people such as journalists and scientists in France, likely did the same across Europe, suggesting a potentially wider problem.

Monsanto Co’s Roundup is shown for sale in Encinitas, California, U.S., June 26, 2017.
Credit: Reuters

The US Environmental Protection Agency this month reaffirmed that glyphosate was safe to use. The European Chemicals Agency and other regulators around the globe have also found glyphosate not likely to be carcinogenic to humans.

The World Health Organisation’s International Agency for Research on Cancer, however, concluded in 2015 that the chemical probably causes cancer.

Bayer, which was chided by investors for the stock rout at the annual general meeting this month, has said the litigation has had no effect on strong demand from US lawn and garden owners for its glyphosate-based herbicides, adding that demand from US farmers continued to be driven by the weather.

Under a push to divest assets including its animal health division, Bayer late on Monday said it had agreed to sell US sun care brand Coppertone to Nivea owner Beiersdorf, for $550 million.

(Reuters)

Time for India to Set up a Framework to Use Gene-Editing Tech in Its Farms

If India classifies genetic editing as gene modification, we will be signalling our unwillingness to participate in the genetic editing race, whose winner will clearly hold the key to development in the 21st century.

The European Court of Justice has ruled that organisms altered using gene editing tools should be subjected to the same rules as genetically modified organisms (GMO). This has led to disappointment among researchers, whose hopes had been buoyed earlier by a court document suggesting that gene editing would be treated differently.

On the other hand, the US Department of Agriculture held that only genetically modified organisms (GMO), and not genetically edited organisms, deserved special regulation.

However, India should create its own framework for regulating genetically edited organisms instead of following either the European or American models.

Climate change, loss of arable land and increasing human population have together strained our existing food resources, so new plant traits are needed to cater to the rising demand. These plants may be resistant to pests, have higher yield or be bio-fortified with vitamins or minerals. Plant breeding, gene-modification and gene-editing are all tools to achieve genetic changes that lead to better plant varieties.

Plant breeding is the traditional method where plants with anticipated traits are crossed and the desirable offspring are selected. This process causes multiple genetic changes throughout the plant’s DNA and is not specific to the trait of interest.

In GMOs, genes derived from other organisms are added to a target organism to confer the trait of interest. For example, Bt cotton contains a gene from the bacterium called Bacillus thuringiensis, which confers resistance to pink bollworms.

Gene editing employs technologies to edit the host organism’s existing genes, making this the most precise way to elicit a genetic change. This is the key difference between a genetically modified organism – GMO – and a genetically edited organism – GEO. A GMO contains a piece of foreign DNA while a GEO have its own DNA altered, with no addition of any foreign genes.

All three processes methods to genetic changes and all three processes can have off-target effects. However traditional plant breeding is a slow process and will be unable to cope with the rate of climate change. Gene modifying/editing technologies are relatively fast, easily replicable and can be used for mass production. Examples of impactful GMOs include Bt cotton, which has made India a global leader in cotton production, golden rice, which is under trial in Philippines and Bangladesh, and Bt brinjal, which has made considerable progress in Bangladesh.

GMOs have, however, not been easily accepted in India. The sole exception has been Bt cotton, cultivated in over 90% of all the land used to grow cotton in the country. But other GM food crops, including GM mustard and Bt brinjal are yet to pass regulatory hurdles in spite of having been developed in India. The case for GMOs is confounded by regulatory ambiguity and strong opposition by anti-GMO NGOs.

There are risks associated with the use of any emerging technology and genetic modification/editing is no different. However, these risks can only be alleviated through transparent governance, not through moratoria. Further scientific risks, such as the development of resistance in bollworms to Bt Cotton, are applicable to crops derived using any technology. Such risks can be anticipated and mitigated through regulation and dialogue between farmers, policymakers and industry. Moratoria, on the other hand, do not help the industry or farmers and may be harmful to the growth of technology.

In the case of Bt brinjal, more than Rs 12,000 crore’s worth of investments in biotechnology research have dried up following the moratorium.

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We are now in the midst of a technology revolution, where the combined use of artificial intelligence and gene editing could empower scientists to design plants with desired traits suited for local conditions. Unlike GMOs, it will be difficult to distinguish genetically edited crops from traditionally bred plants. In the face of strict regulation companies, may resort to a shadow economy; gene-edited crops could be passed as traditionally bred and escape all scrutiny.

Alternatively, we risk choking the genetic editing industry that has the potential to solve our food problems. Instead, a discussion on the importance and need for genetically edited crops and a governance framework that balances their promotion and safety of the environment is required. A framework that imposes stricter checks as genetically edited crops near commercialisation will help promote research in this field.

A strong redressal mechanism, transparent disclosure of safety tests and inclusion of farmers and industry representatives in the regulatory structures will increase confidence in genetically edited crops. To ensure that such crops are not limited to the major agricultural companies, it is also important that smaller companies invest in the research. This can be only enabled by well-defined governance that rewards companies that focus on the safety and efficacy of the edited organism.

Genetic editing is an emerging technology and holds strong potential to alleviate problems in many sectors – including agriculture, healthcare and environment. However, it needs to be backed by policy to help realise this potential. A single adverse regulation may have disastrous consequences and will likely spill over to other applications of genetic editing.

If India classifies genetic editing as gene modification – and so doom GEOs to the fate of GMOs – we will be signalling our unwillingness to participate in the genetic editing race, whose winner will clearly hold the key to development in the 21st century.

Shambhavi Naik is a research fellow at the Takshashila Institution. She has a PhD in cancer biology from the University of Leicester.