German drugs and pesticides giant Bayer AG said on Tuesday it will acquire UK-based KaNDy Therapeutics Ltd to expand its drug development pipeline in women’s healthcare with a prospective non-hormonal treatment of menopausal symptoms.
Bayer said it will pay $425 million up front and “potential milestone payments of up to $450 million until launch followed by potential additional triple digit million sales milestone payments.”
Bayer said: “KaNDy Therapeutics Ltd. recently completed the Phase IIb with NT-814, a first in class, non-hormonal, once-daily, oral neurokinin-1,3 receptor antagonist, publishing positive data for the treatment of frequent symptoms of the menopause, hot flashes and night sweats (vasomotor symptoms).
“The start of Phase III clinical trial is expected for 2021. Once approved, the compound could generate peak sales potential of more than Euro 1 billion globally.”
Stefan Oelrich, Member of the Board of Management of Bayer and President Pharmaceuticals, 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.”
Dr Mary Kerr, co-founder and CEO of Stevenage-based KaNDy Therapeutics Ltd, 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 serving as financial advisor to Bayer, while Linklaters is legal counsel. Goldman Sachs International is serving as financial advisor to KaNDy Therapeutics Ltd., while Goodwin is legal counsel.