Bayer AG update
Sign up for myFT Daily Digest and be the first to learn about Bayer’s news.
Bayer is preparing to acquire a California biopharmaceutical start-up company at a price of up to 2 billion U.S. dollars, because the German drug and agrochemical group is advancing new treatments and research methods in the healthcare field.
Vividion Therapeutics has developed a drug discovery technology that analyzes the interaction between chemical drugs and human proteins. It is hoped that this technology, called chemical proteomics, will help discover drugs for diseases that are currently incurable.
Previously, the search process “has been an increasingly large-scale random walk for decades,” Vividion CEO Jeff Hatfield told the Financial Times, adding that the startup’s technology was Translated into a precise method, the technology used did not exist a few years ago.”
Bayer said that the company’s research project is seeking new treatments for inflammatory diseases such as cancer and irritable bowel disease.
“US [often] Know that there is a mechanism that causes disease, but we cannot attach drugs to that biological mechanism [to treat it],” Bayer’s pharmaceutical boss Stephen Orrich told the Financial Times. “The promise of this new technology is that you can now enter a space that we couldn’t access before. “
The transaction was announced on Thursday along with Bayer’s second-quarter earnings report. It was the company’s third major transaction within two years after its acquisition of the cell therapy company BlueRock Therapeutics. The transaction valued the company at US$1 billion. It is 4 USD in 2019. Acquired Asklepios BioPharmaceutical, a pioneer in gene therapy in October. Bayer paid 1.5 billion euros for Vividion and agreed to pay another 500 million euros for success-related payments.
The acquisition boom of small innovative biotech start-ups has always been the cornerstone of Oelrich’s strategy. He recruited from rival Sanofi in 2018, hoping to transform the German group into an innovative “power”.
According to the Natural Index ranking, San Diego-based Vividion was founded two years ago by a team of scientists around Benjamin Cravatt, a professor of molecular medicine at the Scripps Research Institute, a top non-profit scientific research institution in the United States.
Bayer’s pharmaceutical business generated 42% of the group’s revenue in 2020, but before special projects accounted for 52% of its operating profit. It is about to lose the patent protection of its two best-selling drugs-the anticoagulant Xarelto and the eye drug Eylea.
The company said on Thursday that Bayer’s health care revenue in the second quarter increased by 12.6% year-on-year to 4.5 billion euros, while the crop science division increased by 4.6% to 5 billion euros.
The German company is in trouble due to the misfortune of acquiring American seed manufacturer Monsanto for $63 billion in 2018, which has caused the German company to face a legal dispute over the herbicide glyphosate.
Last year, Bayer agreed to pay US$9.6 billion to resolve 125,000 existing claims and lawsuits from herbicide users with cancer. In May, a US judge dismissed a second US$2 billion settlement for future claims. Last month, Bayer revealed that it would provide an additional US$4.5 billion in reserves related to herbicides.