Bayer and Baxalta in separate €1 billion-plus deals
pharmafile | January 5, 2016 | News story | Manufacturing and Production, Research and Development, Sales and Marketing | Ascensia diabetes care, Baxalta, Bayer, diabetes, panasonic, symphogen
Baxalta has signed a deal with Symphogen potentially worth as much as €1.4 billion, under which the companies will develop immuno-oncology therapies to treat rare cancers.
Denmark-based Symphogen will receive an upfront payment of $175 million in exchange for its exclusive rights to six rare disease drugs, and the fee could rise to as much as $1.4 billion in options and milestone payments over the long-term, in addition to royalties on worldwide sales.
The companies expect to conduct the first early-stage study of one of the drugs in 2017. Following the successful completion of early-stage studies, Baxalta will have an option to complete late-stage development and worldwide commercialisation.
The deal with Symphogen comes with Baxalta reportedly nearing an end-game in talks with fellow rare diseases specialist Shire, over a sale to the Irish drugmaker worth $32 billion in cash and stock.
Bayer
Elsewhere, Bayer has closed on its previously-announced agreement to sell its diabetes care business to Panasonic Healthcare Holdings for around €1 billion.
The sale, first announced in June 2015, includes the Contour portfolio of blood glucose monitoring meters and strips, as well as other products such as Breeze2, Elite and Microlet lancing devices.
Bayer’s diabetes care business brought in €909 million in sales in 2014. When the sale to Panasonic was originally announced some were surprised the sum was not larger, although Bayer is apparently keen to shed a non-core business activity.
The new stand-alone diabetes care business is named Ascensia Diabetes Care Holdings and is headquartered in Basel, Switzerland.
Joel Levy
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