X-Chem licenses drug discovery program to Bayer

X-Chem Inc, a privately held US biotechnology company focused on applying its drug discovery capabilities to the generation of novel small molecule therapeutics, is licensing an early-stage drug discovery program directed against an epigenetic drug target to Germany’s Bayer (BAYN: DE).

Inhibiting epigenetic targets is widely recognized as a promising emerging therapeutic option for cancer and other diseases; however, identifying small molecule inhibitors for these targets is technologically challenging. Fueled by a proprietary library comprised of 100 billion small molecules, X-Chem’s product engine has proven highly effective for discovering novel and selective inhibitors to multiple classes of targets, including those that have historically been difficult to address.

Under the terms of the existing agreement of July 2012 which had not previously been disclosed, Bayer provided an upfront payment and ongoing research funding. X-Chem is applying its DNA-encoded small molecule library and discovery engine to the identification of novel leads to several Bayer targets from different classes and therapeutic areas. Bayer has an exclusive option to license programs generated in the course of the collaboration.