Bayer to acquire KaNDy Therapeutics to add menopause drug candidate
Bayer has agreed to acquire KaNDy Therapeutics, a UK clinical-stage biotech company, in a deal worth up to $900 million, in a move to grow its drug development pipeline in women’s healthcare.
Through the acquisition, the German healthcare company gains access to NT-814, a non-hormonal, once-daily, oral neurokinin-1,3 receptor antagonist in developmen for the treatment of frequent symptoms of the menopause, night sweats, and hot flashes.
Recently, KaNDy Therapeutics completed a phase 2b clinical trial with NT-814 which is said to have yielded positive data. The UK biotech company expects to begin a phase 3 clinical trial for the menopause drug candidate in 2021.
According to Bayer, if approved, NT-814 can potentially earn in excess of €1 billion across the world.
Commenting on Bayer acquisition of KaNDy Therapeutics, Stefan Oelrich – Bayer Pharmaceuticals President, said: “Bayer is focusing on innovative options to address the unmet medical needs of women worldwide.
“With this acquisition Bayer will broaden its women’s healthcare pipeline by adding a potential novel non-hormonal oral treatment option for women during menopause.”
As per the deal terms, Bayer will pay the UK biotech company an upfront amount of $425 million, followed by a maximum of $450 million in the form of potential milestone payments until the launch of the menopause drug candidate. KaNDy Therapeutics also stands to earn potential additional sales milestone payments in triple digit millions.
Dr. Mary Kerr – Co-Founder and CEO of KaNDy Therapeutics, commenting on Bayer acquisition of KaNDy Therapeutics, said: “Bayer has been our preferred partner due to its leading position in the area of women’s healthcare.
“We believe that under the ownership of Bayer, this potential groundbreaking medicine can be optimally developed to become an important non-hormonal treatment option for women suffering debilitating symptoms of the menopause.”
Morgan Stanley is the financial advisor to Bayer for the deal, while Linklaters is the legal counsel. On the other hand, Goldman Sachs International is the financial advisor to KaNDy Therapeutics, while Goodwin is the legal counsel.
The closing of Bayer acquisition of KaNDy Therapeutics, which is subject to meeting customary conditions including anti-trust approval, is expected by September 2020.