Bayer buys Vividion Therapeutics for up to $2bn

German chemicals and pharmaceuticals giant Bayer AG announced it acquired US-based biopharmaceuticals company Vividion Therapeutics for up to $2 billion.

“Vividion’s platform is able to produce a variety of small molecule therapies across indications, with initial focus on targets relevant to oncology and immunology,” said Bayer.

“Vividion’s lead programs include multiple precision oncology targets and precision immunology targets, with ongoing efforts on a transcription factor NRF2 antagonist for the potential treatment of NRF2 mutant cancers, as well as NRF2 activators for various inflammatory diseases such as irritable bowel disease – among other pre-clinical programs.

“Following closing of the acquisition, Bayer will own full rights to Vividion’s proprietary discovery platform, which comprises three integrated, synergistic components: a novel chemoproteomic screening technology, an integrated data portal, and a proprietary chemistry library.

“The acquisition of Vividion strengthens Bayer’s small molecule capabilities and expands Bayer’s reach into new modalities.”

Under the terms of the agreement, Bayer will pay $1.5 billion up front and potential “success-based” milestone payments of up to $500 million.

“This acquisition is a cornerstone of our strategy to fuel our pipeline with breakthrough innovation,” said Stefan Oelrich, president of the Bayer pharmaceuticals division.

“Vividion’s technology is the most advanced in the industry, and it has demonstrated its ability to identify drug candidates that can target challenging proteins.

“Together with Bayer’s existing know-how, we will be able to develop first-in-class drug candidates, increasing the value of our pipeline.

“We want to provide innovative therapies for patients whose medical needs are not yet met by today’s treatment options.”

Vividion CEP Jeff Hatfield said: “Despite advances in genomics, structural biology and high-throughput screening, about 90% of disease-causing proteins cannot be targeted by current therapies due to the lack of a known addressable binding site.

“Our proprietary chemoproteomic platform technology addresses the key limitations of conventional screening techniques and allows us to discover previously unknown, or cryptic, functional pockets on the surface of proteins and identify small molecules that selectively bind to those targets.

“When combined with Bayer’s expertise in the development of small molecules to market and patient, an unparalleled position comes into existence to unlock undruggable targets and generate first-in-class novel compounds for the benefit of patients.”

Vividion will continue to operate as an independent organization on an arm’s length basis “to preserve its entrepreneurial culture as an essential pillar for nurturing successful innovation.”

Closing of the transaction is contingent on customary closing conditions, including receipt of the required regulatory approvals, and is expected to take place in Q3 2021.

Credit Suisse is serving as financial advisor to Bayer, while Baker McKenzie is serving as legal counsel.

Centerview Partners is serving as financial advisor to Vividion, while Cooley LLP is serving as legal counsel

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.