Bayer: Glyphosate Is Ruining the Business
Bayer operates in the three pillars of Crop Science, Pharmaceuticals, and Consumer Health, but is suffering from shrinking margins in its key agricultural business. In addition to the expiration of major product approvals and falling prices for glyphosate-based herbicides, ongoing US litigation over glyphosate and PCB contamination is weighing on the group’s balance sheet. For fiscal year 2026, management forecasts negative free cash flow of between EUR 1.5 billion and EUR 2.5 billion, as litigation-related payments totaling approximately EUR 5 billion are straining liquidity. As a result, net financial debt will temporarily rise again to a level of EUR 32 to 33 billion. Although the European Commission has withdrawn its draft regulation mandating a 50% reduction in pesticide use by 2030, the political goal of the Green Deal remains in place and continues to create regulatory pressure on the industry to adapt. Bayer is responding to this with increased investments in biological active ingredients and is also collaborating with MustGrow Biologics in this context.
Corteva Splits Up for Greater Flexibility
The US-based company Corteva operates a traditional two-part agricultural business comprising seed genetics and synthetic chemical and biological crop protection solutions. To increase flexibility, Corteva plans to fully split the group into two independent, publicly traded companies by the end of 2026. The seed business will continue under the name Vylor, while the crop protection segment will operate as New Corteva. Management estimates the one-time separation costs at approximately USD 350 million, but expects greater long-term efficiency in return. Under the leadership of CEO-designate Luke Kissam, New Corteva aims to position itself as a research-intensive specialist in modern biological crop protection systems.
MustGrow Biologics: Patented Mustard Seed Technology in the Crosshairs of Market Leaders
The Canadian agricultural biotech company MustGrow Biologics develops and patents purely biological active ingredients based on the mustard plant. When applied to the soil, the liquid biocontrol TerraMG releases biological allyl isothiocyanate (AITC), which effectively disrupts the cellular energy production of nematodes and fungal diseases without leaving any chemical residues behind. MustGrow has deliberately chosen not to build its own sales structure and instead relies on exclusive evaluation and licensing agreements with industry leaders. In recent months, MustGrow received regulatory approvals for its organic biofertilizer TerraSante in Georgia, Texas, Utah, and Montana—meaning the product is now approved in more than 10 US states.
At the same time, Bayer is evaluating the TerraMG biocontrol technology in Europe, the Middle East, and Africa as part of the licensing agreement signed in 2023. In April, management closed the Canadian sales arm, NexusBioAg, to focus fully on marketing its own higher-margin product, TerraSante, in the US. According to a study by MarketsandMarkets, the global biopesticide market is expected to grow from USD 8.94 billion in 2025 to USD 17.68 billion by 2030—which would correspond to an annual growth rate of 14.6%. In addition, several insiders, including CEO Corey Giasson, have increased their stakes in the company in the past year, as indicated by filings with the SEDI database. This shows that management believes in the promising prospects of its own business model.
MustGrow Biologics: Technologically Well-Positioned and Still Undervalued
On the Toronto Stock Exchange, the stock stabilized around the CAD 0.50 mark following the most recent financing rounds, giving the company a market capitalization of just over CAD 30 million. Although multi-year evaluation phases with major corporations such as Bayer highlight the typical time-related risks of agricultural biotechnology, MustGrow’s patented platform offers promising prospects in the current regulatory environment and is therefore likely to be of interest to agricultural corporations as well. If rapid commercial scaling in the US is successful, speculative investors could benefit from a government-supported growth market with significant acquisition potential. Since MustGrow deliberately relies on contract manufacturers, the conditions for growth are considered favourable. The scorching summer across large parts of North America and Europe also highlights the challenges facing modern agriculture. Sustainable solutions—such as MustGrow’s products, which also promise even higher yields for farmers—could therefore increase in demand.
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