Bayer AG and Asklepios BioPharmaceutical (AskBio) announced an agreement under which Bayer will acquire AskBio, a U.S.-headquartered biopharmaceutical company specializing in the research, development and manufacturing of gene therapies across different therapeutic areas. AskBio’s development portfolio includes investigational pre-clinical and clinical-stage candidates for the treatment of neuromuscular, central nervous system, cardiovascular and metabolic diseases.
As a result of the acquisition, Bayer will own AskBio’s gene therapy platform, including a broad intellectual property portfolio and established contract development and manufacturing organization (CDMO), laying the foundation for future partnerships in the area of adeno-associated virus (AAV) therapies.
Under the terms of the agreement, Bayer will pay upfront consideration of $2 billion and potential success-based milestone payments of up to $2 billion. Some 75 percent of the potential milestone-based contingent payments are expected to be due during the course of the next five years and the remaining amount thereafter.
“In line with our purpose ‘science for a better life,’ we are committed to bringing significant improvements for patients through innovation,” said Werner Baumann, Chairman of the Board of Management (CEO) of Bayer AG. “With this acquisition, Bayer significantly advances the establishment of a cell and gene therapy platform that can be at the forefront of breakthrough science contributing to, preventing, or even curing diseases caused by gene defects and further driving company growth in the future.”
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“As part of our strategy, we are building new therapeutic platforms including cell and gene therapies,” said Stefan Oelrich, Member of the Board of Management, Bayer AG and President of Bayer’s Pharmaceuticals Division. “As an emerging leader in the rapidly advancing field of gene therapies, AskBio’s expertise and portfolio support us in establishing highly innovative treatment options for patients and further strengthen our portfolio. We want to help patients whose medical needs are not yet met by today’s treatment options, and we look forward to pursuing this important work with the AskBio team.”
“Our innovation in capsid re-engineering and promoter design, coupled with our scaled manufacturing processes, gives us the tools to provide gene therapy solutions to more people suffering from a wider spectrum of diseases not being adequately treated today,” said R. Jude Samulski, PhD, Chief Scientific Officer and Co-Founder of AskBio.
Through the acquisition, Bayer will add an adeno-associated virus (AAV)-based gene therapy platform to its portfolio, which has already demonstrated applicability across different therapeutic areas. Besides multiple clinical-stage assets for indications with high unmet need, the acquisition includes a gene therapy technology platform and gene therapy manufacturing capabilities.
AskBio’s gene therapy platform includes Pro10™, a cell line manufacturing process, and an AAV capsid and promoter library. The company has generated hundreds of proprietary third-generation AAV capsids and promoters that offer differentiation through potentially improved efficacy, immune response and tissue and organ specificity.
AskBio will continue to operate as an independent company. Bayer’s newly established CGT unit will bundle Bayer’s activities in this area moving forward to establish an innovation ecosystem for participating partners within the Bayer organization.
AskBio’s existing minority shareholders, TPG Capital and Vida Ventures, supported the transaction. TPG Capital and Vida Ventures invested in AskBio in 2019 and have worked with the company to advance and expand clinical trials, enhance its manufacturing capabilities and drive long-term growth. The firms have collaborated in the past, and each has notable experience in the gene and cell therapy spaces.
Closing of the transaction is contingent upon customary closing conditions, including receipt of the required regulatory approvals, and is expected to take place during the fourth quarter of 2020.