The pharmaceutical giant Bayer lands a billion-dollar deal and swallows the US biotech company Asklepios Biopharmaceutical. The Leverkusen-based company is thus expanding its cell and gene therapy area and is counting on "groundbreaking innovations" in the treatment of diseases.
Bayer strengthens its pharmaceuticals business with a billion dollar takeover in the United States. According to its own announcement, the Dax group is taking over Asklepios Biopharmaceutical Inc for up to 4 billion US dollars. The North Carolina company specializes in the research, development and manufacture of gene therapies in a variety of therapeutic areas.
Bayer says it will pay $ 2 billion upfront and up to $ 2 billion in performance-related milestone payments. Of these, around 75 percent would likely be incurred over the next five years, with the remaining amount at a later date.
"This acquisition will significantly advance the development of our cell and gene therapy area," said Bayer CEO Werner Baumann, according to the announcement. In this way, the group could work significantly on "groundbreaking innovations" in order to be able to treat or cure diseases based on genetic defects.
With the purchase, Bayer acquires rights to the US group’s therapy platform, including a patent-protected portfolio. The platform is one of the "most advanced gene therapy platforms," said Bayer. It could potentially also be used to treat polygenic diseases, i.e. diseases caused by several genetic defects, and thus support a larger number of patients. In addition, the deal gives Bayer access to a subsidiary of the US group for process development and production in the area of adeno-associated virus-based gene therapies, which is also active in the field of contract manufacturing.
Graduation expected this year
With the takeover, Bayer will receive an additional source of revenue almost immediately, explained Stefan Oelrich, Head of Bayer’s Pharmaceuticals Division, in an interview with Dow Jones. The conclusion of the deal is targeted for the fourth quarter of 2020. Antitrust requirements are not expected, said Oelrich.
Asklepios Biopharmaceutical's access to the emerging cell and gene therapy area from Bayer strengthens its commitment in this area. This will complement the takeover of Bluerock Therapeutics and further advance the goal of creating platforms with cross-therapeutic area potential, says Bayer. The Leverkusen-based company had announced the purchase of Bluerock, a start-up from Cambridge, Massachusetts, a year ago for up to 600 million dollars.
Asklepios Biopharmaceutical's development portfolio also includes pre-clinical and clinical therapy candidates for the treatment of neuromuscular, cardiovascular and metabolic diseases as well as diseases of the central nervous system. Asklepios Biopharmaceutical is to continue to be run as an independent company.
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