Bayer in $1.3 bn deal for cancer drug candidate

Frankfurt, Germany: German pharmaceutical giant Bayer said Tuesday it had struck a deal valued at up to $1.3 billion (1.1 billion euros) with a US bas...

Frankfurt, Germany: German pharmaceutical giant Bayer said Tuesday it had struck a deal valued at up to $1.3 billion (1.1 billion euros) with a US-based biotech company to develop its prospective cancer drug.

Under the agreement, Kumquat Biosciences is responsible for initiating and completing a study into the medicine while Bayer will complete development and commercial activities.

Kumquat will receive up to $1.3 billion and additional royalties on net sales, Bayer said.

The drug candidate is aimed at treating several types of cancer in which the KRAS gene has mutated.

KRAS mutations occur in nearly 25 percent of human cancers yet the variant that Kumquat's experimental drug targets still lacks effective treatment options, according to Bayer.