Bayer HealthCare buys into Maxygen's haemophilia programme

Bayer HealthCare is expanding its commitment to haemophilia with the acquisition of Maxygen's haemophilia programme assets, including a next-generation recombinant Factor VIIa protein known as MAXY-VII.

The lead therapeutic candidate is expected to enter Phase 1 clinical testing in the third quarter of 2008. The total transaction is valued at $90m upfront with a final, potential milestone payment of $30m. This agreement includes a license to use Maxygen's MolecularBreeding technology, a novel research platform, for exploiting gene targets.

Haemophilia is an inherited bleeding disorder caused by deficient or defective blood coagulation proteins. Roughly 20 to 30% of patients with haemophilia develop antibodies - or inhibitors - to current therapies. In these instances a Factor VIIa is used to bypass inhibitors and help these individuals to form clots. MAXY-VII is a next generation Factor VIIa clotting factor that may offer an improved dosing regimen and safety profile. The addition of a development candidate for patients with clotting factor inhibitors could further build Bayer's leadership position in haemophilia care where it offers the recombinant Factor VIII product, Kogenate (antihaemophilic factor [recombinant]). The company has a strong development program dedicated to haemophilia including ongoing clinical investigations into long-acting forms of Kogenate.

"MAXY-VII has the potential to be an important expansion of therapeutic options for people living with haemophilia and we are pleased to add this to our global development portfolio. The agreement fits into our growth strategy for our specialty pharmaceutical business and builds on our expertise in the commercialisation and manufacturing of protein therapeutics," said Dr Gunnar Riemann, member of the executive committee of Bayer HealthCare. "Our scientists are actively collaborating with researchers in academia and biotechnology firms to leverage novel research platforms. Access to Maxygen's MolecularBreeding technology provides us with another tool to expand our product pipeline."

"This agreement allows Maxygen to capture significant value from this preclinical asset, and puts MAXY-VII in the hands of the haemophilia leader," said Russell Howard, chief executive officer of Maxygen. "MAXY-VII has the potential to become the world's first approved shuffled protein therapeutic, a milestone that is likely to open up many more opportunities for Maxygen's technology. Bayer is the ideal company to move the MAXY-VII program toward that goal."

Bayer also receives a non-exclusive license to use Maxygen's MolecularBreeding technology for a broad set of genes for its internal use in its specialty pharmaceutical business. In addition, Bayer receives exclusive rights to use the technology for 30 specified gene targets in areas of strategic business interest. This novel platform allows scientists to exploit gene variation that can result in unique drug targets or novel therapeutic protein candidates.

Bayer has bases in the US and Germany.