Bayer inks up to 592 million-euro endometriosis deal with Evotec

Drug major Bayer (BAYN: DE) and fellow German company Evotec (EVT: TecDAX) have entered into a five-year, multi-target collaboration with the goal of developing three clinical candidates for the treatment of endometriosis, worth a potential 592 million euros ($761.6 billion) to Evotec.

Under the terms of the deal, Bayer will be responsible for any subsequent clinical development and commercialization. Evotec will get 12 million euros as an upfront payment and could also receive additional preclinical, clinical and sales milestones of potentially up to 580 million euros, plus potential royalties of up to low double digit percent of net sales, depending on which party brought the compound to the collaboration and the successful development and approval of potential drug candidates.

Both parties will contribute innovative drug targets and high quality technology infrastructures and will share the responsibility for early research and pre-clinical characterisation of potential clinical candidates in the disease area of endometriosis. Endometriosis affects an estimated 176 million women worldwide or 10% of women of reproductive age. Bayer is the world leader in the field of hormonal oral contraception and a pioneer in the area of women’s health care.