(Bloomberg) -- Bayer AG said the pandemic hurt demand for some of its medicines in the second quarter, crimping the outlook for sales and earnings this year.

• Core earnings per share will probably be between 6.70 euros and 6.90 euros this year, the Leverkusen, Germany-based company said Tuesday, adjusting an earlier forecast that had excluded the coronavirus’s impact.

Key Insights

• The slowdown in surgeries and other non-essential medical procedures hurt Bayer’s pharma division. There could be relief there in coming months as medical systems around the world learn to cope with coronavirus patients while also handling more routine matters.
• The consumer-health unit benefited early this year from people building stockpiles of over-the-counter medicines, but that effect waned in the second quarter, dragging down sales and earnings.
• Crop science is emerging as a bright spot amid the pandemic, with sales of seeds and crop chemicals staying strong. Bayer executives Tuesday will probably highlight that as evidence that its conglomerate structure -- pairing drugs and agriculture -- helps it handle disruptions.
• While Bayer’s business updates matter, the biggest question hanging over the company is to what extent it has actually resolved the Roundup weedkiller litigation that’s dragged down its stock in recent years with its recent settlement.

Market Reaction

• Shares are down about 20% this year while the Bloomberg Europe 500 Pharmaceuticals Index has declined almost 3%. Since Bayer announced its litigation deals at the end of June, the stock has declined further.

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