Bayer bets up to $4 billion to expand in cell and gene therapy

Germany’s largest drugmaker Bayer (BAYN: DE) today revealed it is taking a hefty punt on expanding its cell and gene therapy portfolio, with the acquisition of privately-held US biotech Asklepios BioPharmaceutical (also known as AskBio).

AskBio’s development portfolio includes investigational pre-clinical and clinical stage candidates for the treatment of neuromuscular, central nervous system, cardiovascular and metabolic diseases. News of the proposed acquisition pushed Bayer’s shares up more that 1% to 42.88 euros by mid-morning.

Bayer will own full rights to AskBio’s gene therapy platform, including a broad intellectual property portfolio and an established contract development and manufacturing organization (CDMO) laying the foundation for future partnerships in the area of adeno-associated virus (AAV) therapies. The addition of AskBio to Bayer’s emerging cell and gene therapy (CGT) business strengthens Bayer’s commitment to the field. It complements the 2019 acquisition of BlueRock Therapeutics, a developer of stem cell therapies, and consolidates Bayer’s ambition to create platforms with the potential to have an impact in multiple therapeutic areas.

According to AskBio, the overall market for cell and gene therapy stood at $4.8 billion in 2019 but will grow tenfold to $44.5 billion by 2024.