Bayer set to invest €5bn in research for new weedkillers

Pharmaceutical company Bayer is set to invest €5bn (£4.5 bn) in weedkiller research as if faces mounting litigation against its US arm over its Roundup pesticide which claimants allege causes cancer.

The company made the announcement on Friday as it aims to repair its image following a raft of lawsuits over the alleged carcinogenic side-effects of glyphosate-based Roundup, its US subsidiary Monsanto's star product.

As part of its investment plan, Bayer also said it will attempt to reduce its environmental impact by 30% over the next decade.

However, a company spokesman told Bloomberg the €5bn of funds did not represent new spending.

“Bayer has a heightened responsibility and the unique potential to advance farming for the benefit of society and the planet. We are committed to living up to this responsibility and using our full potential,” it said in a press release on its website.

“We have been engaged in discussions about agriculture and nutrition, sustainability and biodiversity, and also about the new size and significance of our company.

“We heard questions and concerns about us. These concerns matter to us and we want to address them. Farming is too important to limit its progress. To ensure future advancements, we need to change,” the press release said.

Bayer stock has been hard hit by a wave of litigation and on Friday morning the shares were dipping by 0.39%, giving the company a market value of $56bn.