Patents remain valid: Bayer stock on the rise: Monsanto wins sweeping patent dispute in India | message

On Tuesday, the country's Supreme Court ruled that the patents on genetically modified cotton produced by the seed and crop protection company remain valid. Thus, the court seized a previous court decision, according to which seed, plants and animals under Indian law could not be patented. Another court now has to decide whether Indian companies have violated Monsanto's cotton patents, according to the Supreme Court ruling.

The ruling is likely to have far-reaching implications as it strengthens foreign investors' confidence in the validity of patents. For example, biotech companies may be revising their plans for expansion, which they had recently shut down due to restrictions imposed by the Indian government or courts. Monsanto, on the other hand, no longer has to fear the loss of significant revenues that threatened the loss of the patent.

The ruling was preceded by years of disputes between the US company and Indian seed companies, led by Nuziveedu Seeds. The Indian company, a licensee of Monsanto in the country, had requested in court to revoke the patent for Monsanto. As a result, the Americans filed a patent suit. The Indian licensees had also argued that Monsanto had no right to charge fees from them.

In the XETRA trade, the news was received positively: As one of the winners in the German benchmark index DAX, the Bayer share gained 2.58 percent to 65.25 euros.

"The news about Monsanto was probably the catalyst for the price gains of Bayer," said analyst Daniel von Wendorff of the Commerbank. "But for the whole company, it plays a rather disorderly role."

In contrast, the news for the charting of the Bayer stock may have played a role. The paper again overcame the 50-day line of 64.78 euros, which represents the average price of the past 50 trading days and is an indicator of the short-term trend for chart-oriented investors. If the line is overcome, it can attract more investors.

However, at the level of the moving average - around 65 euros - there is also a resistance on which the Bayer stock recently failed several times.

/ Nas / STW / jha /


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Image sources: Taina Sohlman /, 360b /, Bayer