BERLIN, Oct. 26 (Xinhua) -- Bayer AG, a German pharmaceutical and chemical company, announced on Monday that it is purchasing U.S.-based Asklepios BioPharmaceutical (AskBio) with an upfront payment of 2 billion U.S. dollars.
The final purchasing price would also include up to 2 billion dollars in "potential success-based milestone payments," of which around 75 percent were expected to be paid over the next five years, according to Bayer.
North Carolina-based AskBio, founded in 2001, is specialized in the research, development and manufacturing of gene therapies, and has in its pipeline treatments for Parkinson's disease and congestive heart failure. With the transaction, Bayer would acquire full rights to AskBio's gene therapy platform, including a broad-based patent-protected portfolio.
"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, in a press release issued by Bayer on Monday.
The portfolio of Bayer's largest takeover in the U.S. since Monsanto would include investigational pre-clinical and clinical therapy candidates for the treatment of neuromuscular, cardiovascular and metabolic diseases as well as therapeutics for Parkinson's disease and congestive heart failure.
"As an emerging leader in the rapidly advancing field of gene therapies, the expertise and portfolio of AskBio support us in establishing highly innovative treatment options for patients and further strengthens our portfolio," said Oelrich.
The transaction is expected to be completed by the end of 2020. AskBio would continue to operate as an independent company, according to Bayer.
In the second quarter, Bayer recorded a net loss of around 9.5 billion euros (11.2 billion U.S. dollars) due to high provisions for glyphosate settlement in the United States. Enditem
