The HealthCare segment of
) recently inked a collaboration agreement with
Seattle Genetics Inc.
). The deal will allow Bayer to gain worldwide rights to Seattle
Genetics' auristatin-based antibody-drug conjugate (ADC)
technology along with antibodies to several oncology targets.
Bayer will be paying an upfront and option exercise fees to
Seattle Genetics of up to $20 million. Furthermore, Bayer will
have to shell out approximately $500 million on achieving certain
development and commercialization milestones. Bayer will further
pay royalties on worldwide net sales of the products, approved
under the collaboration agreement.
As per the terms of deal, Bayer will be responsible for the
development, manufacturing and commercialization of all products
under the agreement.
Bayer's collaboration with Seattle Genetics is encouraging. The
deal is expected to strengthen prior's oncology portfolio.
However, the oncology market currently has big companies like
Bayer has been pretty active on the acquisition and collaboration
front this year. In Jun 2013, the company's HealthCare segment
was boosted by the acquisition of Conceptus Inc. for $31.00 per
share or approximately $1.1 billion in cash.
Conceptus develops and commercializes innovative device-based
solutions in permanent birth control. The acquisition ensured the
presence of short-term, long-term and permanent contraceptive
choices in Bayer's portfolio for women.
BAYER A G -ADR (BAYRY): Free Stock Analysis
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The company also struck a deal to acquire all shares of
Germany-based private company Steigerwald Arzneimittelwerk GmbH.
Steigerwald Arzneimittelwerk specializes in pharmacy-only herbal
medicines. The transaction is expected to close early July this
year on the fulfilment of certain conditions, including antitrust
Bayer, a large-cap pharma company, presently carries a Zacks Rank
#3 (Hold). Meanwhile, other large-cap stocks such as
) currently look more attractive with a Zacks Rank #2 (Buy).