Bayer Forms a $1.11B Alliance with Japan’s PeptiDream
A public Kanagawa-based biopharmaceutical company, PeptiDream Inc., has now scored a billion-dollar-plus deal with German pharma major Bayer.
The deal involves PeptiDream receiving an undisclosed upfront payment and research funding and is eligible to receive preclinical, clinical, and commercialization milestone payments potentially totaling up to $1.11 billion (¥124.5 billion). In addition, PeptiDream is eligible to receive royalties on sales of any products that arise from the collaboration.
Bayer and PeptiDream will work to identify new compounds for difficult-to-address drug targets by using PeptiDream’s proprietary Peptide Discovery Platform System (PDPS) technology. The aim of the collaboration is to discover novel lead structures in areas of high unmet medical need across Bayer’s strategic research areas such as oncology or cardiology.
Under the agreement, PeptiDream will use its proprietary Peptide Discovery Platform System (PDPS) technology to identify macrocyclic/constrained peptides against multiple targets of interest selected by Bayer and to optimize hit peptides into therapeutic peptides or small molecule products.
Bayer also holds an exercisable option to negotiate for an extension of the license to peptide-drug conjugate (PDC), diagnostic, bioimaging, and agricultural use and applications. Bayer will have the right to develop and commercialize all compounds
resulting from the collaboration.“We are extremely excited to be initiating this discovery alliance with Bayer. This is one of the broadest discovery deals PeptiDream has entered into, covering peptide therapeutics and small molecule therapeutics, and options to peptide drug conjugates (PDCs), diagnostic agents, bioimaging agents, and more. This deal further exemplifies the power of our PDPS platform and the impact it is having on early drug discovery. We greatly look forward to working with Bayer to leverage both companies’ expertise and capabilities to discover and develop the next generation of first-in-class and best-in-class therapeutics,” said Patrick Reid, CEO of PeptiDream.
“Complementing our in-house expertise with technologies and know-how of excellent partners is an integral part of our innovation strategy at Bayer”, said Dr. Andreas Busch, member of the Executive Committee of Bayer AG’s Pharmaceuticals Division and Head of Drug Discovery. “We believe that the Peptide-Discovery Platform System of PeptiDream offers a highly promising technology for our drug discovery efforts.”
