Bayer Schering collaborates with Micromet on novel approach to cancer therapy in up to $429 million deal

Bayer Schering Pharma of Germany says it will develop a new BiTE antibody for the treatment of solid tumors in collaboration with US biopharmaceutical company Micromet in a deal worth a potential 285 million euros ($429 million) in milestone payments to the latter, whose shares jumped 4% to $7.1 shortly after US stock markets opened today.

In January, the two companies had entered into an option, license and collaboration agreement. By exercising the option now, Bayer Schering Pharma has triggered a joint collaboration on the development of the BiTE antibody against an undisclosed solid tumor target through the completion of Phase I clinical  trials, at which point Bayer will assume full control of the further development and commercialization of the antibody. BiTE antibodies are designed to direct the body's cell-destroying T cells against tumor cells, and represent a new therapeutic approach to cancer therapy.

Under the terms of the accord, Bayer will pay Micromet an option exercise fee of 5 million euros in January 2010. Also, Micromet will be eligible for milestones of up to 285 million euros in total, as well as double-digit royalties based on tiered net sales of the product. In addition it is planned to reimburse Micromet for its R&D expenses, the company noted.

"BiTE antibodies represent a promising approach to cancer therapy," said Karl Ziegelbauer, head of Therapeutic Research Oncology at Bayer Schering Pharma. "We are pleased with the progress of the program since the signing of the agreement in January of this year. We are looking forward to developing a new treatment for patients with solid tumors and to further advance novel therapeutic options in our oncology portfolio," Dr Ziegelbauer added.