Bayer strikes US$875mil deal to buy women’s health biotech firm

FRANKFURT: Bayer AG struck an US$875mil deal to acquire British women’s health biotech Kandy Therapeutics Ltd in a move to expand its pharmaceuticals division before the expiration of patents on existing medicines.

The German drug and chemical company agreed to pay US$425mil upfront and potential milestone payments of US$450mil until the launch of Kandy’s experimental treatment for menopause symptoms.

Kandy’s drug NT-814 is expected to start a phase III clinical trial next year and could generate peak sales of €1bil globally, Bayer said in a statement.

Bayer shares rose 0.8% in Frankfurt.

Bayer’s pharmaceutical division has been looking for small-scale deals to boost earnings at a time when blockbuster blood thinner Xarelto and eye-care medicine Eylea will lose patent protection in the next few years.

The Leverkusen, Germany-based company has lacked major firepower for acquisitions after spending US$63bil in 2018 on agriculture giant Monsanto Co - a deal that brought a host of legal headaches that Bayer is also trying to put behind it.

Last August, Bayer’s pharma unit agreed to pay as much as US$600mil to buy the remainder of cell therapy biotech BlueRock Therapeutics. At the time, Stefan Oelrich, Bayer’s head of pharma, said that the best value-creating deals in the industry in recent years have targeted early-stage companies whose products wound up becoming blockbusters.

Once Kandy’s drug comes to market, Bayer could make additional sales milestone payments that exceed US$100mil, the company said. The deal is expected to close in September. — Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Bayer AG , biotech , Kandy Therapeutics Ltd ,


Did you find this article insightful?


Next In Business News

Confidence in PN government lifts palm oil prices
KLCI takes pause as investors digest recent gains
AmInvest Research maintains Buy on Hong Leong Bank, FV RM19.30
Maybank’s 9M core net profit within CGS-CIMB Research’s forecast
RHB Research keeps Buy call on Public Bank, TP RM21.60
Ringgit opens higher on continued dollar weakness
China's factory activity expands at fastest pace in over 3 yrs
Bursa ekes out slight gains, China data to boost sentiment
Foreign selling on Bursa at RM23.48bil since January
Padini poised for further recovery, says Kenanga

Stories You'll Enjoy