Bayer inks multi-million dollar cancer immunotherapy deal

Germany’s largest pharma company Bayer (BAYN: DE) has entered into a new oncology collaboration and license agreement with Israel-based Compugen (Nasdaq: CGEN) targeting the research, development and commercialization of antibody-based therapeutics for cancer immunotherapy against two novel immune checkpoint regulators discovered by the Israeli firm. Compugen's shares rocketed as much as 59% to $8.69 in pre-market Nasdaq trading this morning (August 5).

In addition to an upfront payment of $10 million, Compugen is eligible to receive over $500 million in potential milestone payments for both programs, not including milestone payments of up to $30 million associated with preclinical activities. Compugen is also eligible to receive mid to high single-digit royalties on worldwide net sales of any resulting products under the collaboration. The partners will jointly pursue a preclinical research program. Subsequently, Bayer will have full control over further development and worldwide commercialization rights for potential cancer therapeutics.

“Bayer is committed to translating the science of cancer research into effective therapies helping people affected by cancer live longer and improve their quality of life,” said Andreas Busch, a member of the Bayer HealthCare executive committee and head of global drug discovery. “Antibody-based immunotherapies are promising approaches in oncology which can stimulate the body’s own immune cells to fight cancer cells. Immunotherapy is one of our focus areas in oncology research. We are looking forward to expanding our portfolio in this area through partnering with Compugen,” Prof Busch added.