) is looking to boost its portfolio by inking deals/ making
acquisitions. In keeping with its strategy to grow via
acquisitions/collaborations, Bayer signed an agreement with
Dimension Therapeutics to develop and subsequently commercialize a
new gene therapy for treating patients suffering from hemophilia A.
According to the terms of the deal, Bayer will make an upfront
payment of $20 million to Dimension Therapeutics. The deal also
involves milestone payments from Bayer of up to $232 million.
Moreover, Dimension Therapeutics will be responsible for all
pre-clinical development activities as well as the phase I/IIa
trial with funding from Bayer. The German company will conduct a
confirmatory phase III trial (depending on results of the mid-stage
study) and also assume responsibility for submitting the hemophilia
A candidate, emanating from the collaboration, to regulatory
authorities for approval. Bayer will also be responsible for
commercializing the drug, in the event of favorable regulatory
decisions. Royalties from sales of the product will be paid to
Dimension Therapeutics by Bayer.
We note that Bayer already has a presence in the hemophilia A
market (Kogenate) and is developing BAY94-9027 for the same
indication. The company intends to file an application with the FDA
in 2015. Given its expertise in the field, the deal seems to be a
smart strategic move.
Bayer was also in the news recently when its oncology drug Nexavar
was approved in Japan. Approval was gained for treating patients
with differentiated thyroid cancer.
The Japanese approval of Nexavar was based on positive results from
the phase III DECISION trial. Results from the study revealed a
significant increase in median progression-free survival for
patients treated with Nexavar compared to patients under placebo.
We note that Nexavar was approved in the U.S. for the treatment of
patients suffering from locally recurrent or metastatic,
progressive, differentiated thyroid carcinoma refractory to
radioactive iodine therapy in Nov 2013. Approval for the
indication in the EU was gained in May 2014. Bayer has an agreement
) on Nexavar, which is approved for other oncology indications as
Bayer carries a Zacks Rank #2 (Buy). Better-ranked stocks in the
healthcare space include
). Both are Zacks Rank #1 (Strong Buy) stocks.
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
BAYER A G -ADR (BAYRY): Free Stock Analysis
REGENERON PHARM (REGN): Free Stock Analysis
ALLERGAN INC (AGN): Free Stock Analysis Report
AMGEN INC (AMGN): Free Stock Analysis Report
To read this article on Zacks.com click here.