1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Market News Forum
Market News Forum
Articles (293) 

Bayer Enters Into Collaboration With Isis For Enhancing Its Drug Portfolio

May 07, 2015 | About:

German drug maker Bayer AG (BAYRY) has announced this Monday that it has entered into collaboration with the California based pharmaceutical company, Isis Pharmaceuticals (ISIS), an industry leader in the discovery and development of antisense drugs in order to enhance its cardiovascular drugs portfolio. This bid would aid in strengthening Bayer’s product range by gaining rights to the Californian company’s anti-clotting drug which is currently under Phase II trials. Let’s quickly take a glance on what has been shared with regard to the details of this partnership and how it would aid Bayer AG to outgrow in the cardiovascular drugs market.

The deal details

Under the terms of the deal, Isis is eligible to an immediate $100 million payment and an extra $55 million as payment depending on the success of the Phase II clinical trials on patients with defective kidney function. The experimental drug called the ISIS-FXI, would be evaluated by Bayer in frail patients that cannot be administered the currently available drugs such as the blockbuster drug Xarelto because they have high risk of bleeding.

Isis would also receive milestone payments as the experimental drug advances into the market after receiving final approval from the U.S. FDA, as well as would receive tiered royalties linked to the gross margins generated from sale of ISIS-FXI.

The CEO of Isis Pharmaceuticals, Stanley Crooke, commented on the alliance with Bayer on Monday – “We believe Bayer, a leading pharmaceutical company in the treatment of thrombotic disease, is the ideal partner for ISIS-FXIRx. This transaction further demonstrates Bayer's commitment to the field… We are pleased with the value of this partnership, which supports a robust development program to maximize the value of ISIS-FXIRx globally and which allows us to participate significantly in future commercial success. We believe that this transaction represents the right deal, with the right partner and the right development plan.”

The partnership crux

Through this stated alliance Bayer would be responsible for the commercialization and development of Isis’ experimental blood thinning drug which is presently under clinical trial phase for treatment of thrombosis, a condition that leads to clotting of blood which can be the cause of heart attacks and strokes and other serious health issues. In fact, this drug could result in significant reduction of the thrombosis risk as it inhibits Factor XI without increasing the risk of blood loss in patients having signs of thrombosis. But all depends on the success factor in the Phase II trials which are still under progress.

Bayer would be carrying out the global clinical development for the drug for winning the regulatory approval for the drug and bringing it to the market. Bayer would also be responsible for marketing the compound after it receives regulatory approval.

Presently the German drug maker’s cardiovascular drug Xarelto is one of the potent anti-clotting drugs selling in the market. If ISIS-FXI gets added to its cardiovascular portfolio it might prove to be a good follow-up drug for patients who cannot be treated with any other such drugs available in the market. Hence, partnering for this drug with ISIS could prove to be highly beneficial for Bayer as it could help in gaining a competitive advantage over its rival peers such as Pfizer Inc. (NYSE:PFE) and Bristol-Myers Squibb (NYSE:BMY) who have their blockbuster anti-clotting drugs competing in the market.

Final thoughts

Though the completion of the deal is still pending approval as per the Hart-Scott-Rodino Antitrust Improvements Act, shares of Isis Pharmaceuticals surged 2.44% to close at $59.66 on Monday after the announcement of the proposed partnership gained the limelight. Also the management of Bayer is highly positive on the future prospects through this alliance for the anti-clotting drug under the testing phases. Let’s keep an eye on whether this collaboration finally aids Bayer AG to create a niche in the cardiovascular drug market.

Rating: 0.0/5 (0 votes)


Please leave your comment:

Performances of the stocks mentioned by Market News Forum

User Generated Screeners

pascal.van.garsseHigh FCF-M2
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
/* */