Bayer buys rights to 'female Viagra' for C$330 million; Johnson & Johnson proceeds with $2.42 billion bid for Crucell

Bayer HealthCare Pharmaceuticals, a unit of Germany’s Bayer (BAY: DE) has entered into an accord with Quebec, Canada-based EndoCeutics for Phase III development and worldwide marketing of dehydroepiandrosterone (DHEA), a new treatment for vaginal atrophy and female sexual dysfunction for which a provisional trade name Vaginorm has been proposed.

Bayer’s partnership with EndoCeutics may mean up to about C$330 million ($322.4 million) in milestones and research costs, as well as royalties based on the sales of the compound by Bayer. This agreement includes financing for clinical trials in Canada and the USA and will be paid to EndoCeutics, which has retained rights to commercialize the drug in Canada.

“Our partnership with EndoCeutics provides us with an important late stage addition to our Gynecological Therapy R&D pipeline in an important, underdeveloped treatment area relating to female sexual dysfunction,” said Shurjeel Choudhri, senior vice president and head of medical and scientific affairs at Bayer in the USA. “This will prove to be mutually beneficial for both companies and allow us to grow our research and development footprint in Quebec,” he added.