Bayer AG will acquire Asklepios BioPharmaceutical Inc. (AskBio), a U.S. biotech firm, for $4 billion as the German pharmaceutical and chemical market bets on gene therapy, according to the company’s press release. Bayer will pay $2 billion upfront and the remaining $2 billion in milestone payments contingent on development achievements.
- The deal comes after Bayer leaned on external firms to enhance drug development in 2018, development analysts predict to make up for an expected decline in revenues from the entity’s two pharma bestsellers from 2024.
- Bayer’s deal in Asklepios complements the acquisition of BlueRock Therapeutics in 2019, a developer of stem cell therapies.
- AskBio and BlueRock will collaborate and exchange information but will operate as independent entities, while AskBio’s co-founders will remain with the firm.
- AskBio’s most advanced projects are early tests on prospective treatments against Pompe, Parkinson, and congenital heart failure diseases.
- AskBio’s investors TPG Capital and Vida Ventures to sell their minority stake in the company.
Bayer stock is gaining. BAYN is up 0.46%
