Bayer Inks $4B Pharma Acquisition Deal to Boost Gene Therapy Base

October 28, 2020 - Bayer recently announced a $4 billion pharma acquisition deal with Asklepios BioPharmaceutical (AskBio) to broaden its base in cell and gene therapy.  

As part of the acquisition deal, Bayer will own full rights to AskBio’s gene therapy platform, which includes investigational pre-clinical and clinical stage candidates for the treatment of neuromuscular, central nervous system, cardiovascular, and metabolic diseases.

The platform will allow Bayer to bring urgently needed treatments to patients across multiple disease areas with high unmet need. 

“As part of our strategy, we are building new therapeutic platforms including cell and gene therapies,” Stefan Oelrich, member of the board of management, Bayer AG and president of the Bayer’s Pharmaceuticals Division, said in the announcement.

“As an emerging leader in the rapidly advancing field of gene therapies, the expertise and portfolio of AskBio supports us in establishing highly innovative treatment options for patients and further strengthens our portfolio. We want to help patients whose medical needs are not yet met by today’s treatment options and we are looking forward to work together with the team at AskBio.”

Through the acquisition, Bayer will add AskBio’s adeno-associated virus (AAV)-based gene therapy platform to its portfolio. AAV therapies offer improved efficacy, immune response, and tissue and organ specificity.

Bayer noted that the platform represents one of the most “advanced gene therapy platforms” with the promise to also “tackle polygenetic indications,” which will help a larger number of patients.

The company will also receive rights to AskBio’s contract development and manufacturing organization (CDMO), which will help to create future partnerships in the area of AAV therapies. 

Overall, the addition of AskBio to Bayer’s cell and gene therapy business strengthens Bayer’s commitment to the cell and gene therapy field. 

Bayer's new cell and gene therapy unit will combine its expertise in this area to create an innovation ecosystem for participating partners within the Bayer organization, the company said. 

AskBio also noted that it will continue to operate as an independent company in order to maintain its “entrepreneurial culture.” 

Currently, the company’s lead research programs, which are focused on Pompe disease, Parkinson’s disease, and congestive heart failure, are in early phases of clinical development.

“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 disease that is not being adequately treated today,” said Richard Jude Samulski, MD, chief scientific officer and co-founder of AskBio.

Closing of the transaction is based on closing conditions, including receipt of the required regulatory approvals. The companies said they expecte to close during the fourth quarter of 2020.

The addition of AskBio to Bayer’s portfolio complements the company’s $240 million acquisition of BlueRock Therapeutics back in 2019.

With this transaction, Bayer received full rights to BlueRock Therapeutics’ CELL+GENE platform, including a broad intellectual property portfolio and associated technology platform. These portfolios included proprietary iPSC technology, gene engineering, and cell differentiation capabilities.

“In line with our strategy to ramp up our investments in technologies with breakthrough innovation potential, we have decided to build our cell therapy pipeline based on BlueRock Therapeutics’ industry-leading iPSC platform,” Stefan Oelrich, member of the board of management, Bayer AG, and president of the pharmaceuticals division, said in the August 2019 announcement. 

“Ultimately, we are joining forces to deliver new treatment options for medical needs that are still unmet today.”