Bayer denies knowing about asundexian data before bond sale
23 Nov 2023
Phase 3
Bayer said it was unaware about disappointing study results for its experimental oral factor XIa inhibitorfactor XIa inhibitor asundexian prior to selling $5.75 billion of bonds to investors. Earlier this week, the company disclosed that asundexian had failed to work as well as Pfizer and Bristol Myers Squibb's direct oral anticoagulant Eliquis (apixaban) in the Phase III OCEANIC-AF trial of patients with atrial fibrillation.
"The results of the OCEANIC-AF study on asundexian were not yet available when the bond was priced [last] Thursday," a Bayer spokesperson stated. The company priced bonds with maturities between three to 30 years, attracting more than $22 billion in orders, according to Informa Global Markets. "All relevant information and risks were included in the bond prospectus," the spokesperson added.
Acting on advice from an independent data monitoring board, the OCEANIC-AF failure prompted Bayer to halt the trial. Meanwhile, around the same time, the company suffered some legal setbacks, including being ordered to pay close to $1.6 billion to plaintiffs over its Roundup weedkiller. The double-whammy sent Bayer shares and bonds tumbling.
Investors 'angry'
"Not surprisingly, the huge trial loss and the discontinuation of one of Bayer's most promising drugs in its pipeline had a profound effect on its investors," commented CreditSights analyst Andrew Brady. "From our conversations with clients, many are angry and are seriously wondering whether Bayer management rushed to bring the [bond] deal ahead of the news," he added.
The company's bankers held a call with some of its investors earlier this week in a bid to placate them, according to people familiar with the matter. One of those sources said that investors on the call sought answers as to whether the bad news would have a material impact on company earnings. Bayer told investors it had reserves to deal with the Roundup litigation, and could not have predicted the jury verdict, the source said.
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