Eylea Approval Boosts the DAX
Bayer’s stock climbed to the top of Germany’s leading index DAX on Thursday, attributed to positive news about approval in China. This development is particularly noteworthy given the weak market environment and has positively affected the stock price, which is highly relevant for private investors.
Background of the Approval in China
The approval concerns the eye medication Eylea, which has been approved in China. This is an important step for Bayer, as China is a significant market for pharmaceuticals. The approval of Eylea has led to a substantial increase in Bayer’s stock price, which rose about 3.35 percent to 24.37 euros on Thursday morning.
Market Reaction and Analyst Opinions
The positive market reaction to the approval in China is also reflected in analyst opinions. AlphaValue/Baader Europe has confirmed its buy recommendation and slightly adjusted the price target. Goldman Sachs has raised its price target from 27.20 to 29.10 euros but maintained a neutral rating. JPMorgan also remains neutral, with a target price of 25 euros.
Long-term Perspectives and Risks
Despite the positive developments, legal disputes in the U.S. concerning glyphosate-containing products like Roundup and PCB-contaminated sites pose a risk for Bayer. These legal risks are difficult to quantify and affect the company’s long-term outlook.
Financial Forecasts for 2025
Bayer has confirmed its currency-adjusted outlook for 2025, with an adjusted EBITDA between 9.3 and 9.8 billion euros. The pharmaceuticals division is performing better than expected, positively influencing revenue and margin forecasts. However, Bayer anticipates special charges of about 1.5 billion euros due to legal risks.
Overall, the approval of Eylea in China demonstrates that Bayer is capable of making inroads in key markets and strengthening its position. For private investors, this is a positive signal that enhances the stock’s attractiveness. Nevertheless, ongoing legal risks must be considered to make a comprehensive assessment of the long-term outlook.