German pharma and crop sciences major Bayer (BAYN: DE) has entered into an agreement to fully acquire BlueRock Therapeutics, a privately held US-headquartered biotechnology company focused on developing engineered cell therapies in the fields of neurology, cardiology and immunology, using a proprietary induced pluripotent stem cell (iPSC) platform.
Following a 2016 joint venture with Versant Ventures to establish BlueRock Therapeutics with a $225 million investment, Bayer will acquire the remaining stake for around $240 million in cash to be paid upfront at closing and an additional $360 million payable upon achievement of pre-defined development milestones. Bayer’s shares were up 1.48% at 59.71 euros by early afternoon trading today.
Bayer already owns a 40.8% stake in BlueRock, so the investment corresponds to a total company value of BlueRock Therapeutics of around $1 billion. The closing of the transaction is expected during the third quarter of 2019.
“This acquisition marks a major milestone on our path towards a leading position in cell therapy,” said Stefan Oelrich, a member of the board of management, at Bayer, and president Pharmaceuticals Division. “In line with our strategy to ramp up our investments in technologies with breakthrough innovation potential, we have decided to build our cell therapy pipeline based on BlueRock Therapeutics’ industry-leading iPSC platform. Ultimately, we are joining forces to deliver new treatment options for medical needs that are still unmet today.”
“We are extremely excited to be part of the world-class Bayer organization,” said Emile Nuwaysir, chief executive of BlueRock Therapeutics. “We have built a premier cell therapy platform at BlueRock Therapeutics, with industry-leading R&D, process development and manufacturing capabilities. With the expertise and support of Bayer, we will be even better positioned to pursue the discovery, development and commercialization of revolutionary new cell therapies for patients suffering from diseases previously thought of as intractable.”
Dr Nuwaysir will continue to lead his 130-person team as an independent company within Bayer, it was noted.
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