Date: 13-Aug-2020

Bayer To Buy UK-based Biotech KaNDy Therapeutics For US$ 875 Million

Bayer, a global leader in women’s healthcare, and KaNDy Therapeutics Ltd, a UK clinical-stage biotech company, announced that Bayer will acquire KaNDy Therapeutics Ltd to expand its drug development pipeline in women’s healthcare.

KaNDy Therapeutics Ltd recently completed the phase IIb with NT-814, a first in class, non-hormonal, once-daily, oral neurokinin-1,3 receptor antagonist, publishing positive data for the treatment of frequent symptoms of the menopause, hot flashes and night sweats (vasomotor symptoms). The start of phase III clinical trial is expected for 2021. Once approved, the compound could generate peak sales potential of more than Euro 1 billion globally.

Up to 75% of women going through menopausal transition experience menopausal vasomotor symptoms. These symptoms can impact both their work and private life and are debilitating for several years for those affected and result in significant incremental healthcare and economic costs.

Under the terms of the agreement Bayer will pay an upfront consideration of USD 425 million, potential milestone payments of up to USD 450 million until launch followed by potential additional triple digit million sales milestone payments. Closing is subject to customary conditions, in particular anti-trust approval, and is expected by September 2020.

“Bayer is focusing on innovative options to address the unmet medical needs of women worldwide”, said Stefan Oelrich, member of the Board of Management of Bayer and president Pharmaceuticals. “With this acquisition Bayer will broaden its women’s healthcare pipeline by adding a potential novel non-hormonal oral treatment option for women during menopause.”

“Bayer has been our preferred partner due to its leading position in the area of women’s healthcare”, said Dr. Mary Kerr, co-founder and CEO of KaNDy Therapeutics Ltd. “We believe that under the ownership of Bayer, this potential groundbreaking medicine can be optimally developed to become an important non-hormonal treatment option for women suffering debilitating symptoms of the menopause.”

The acquisition of KaNDy Therapeutics Ltd is another important milestone in augmenting Bayer’s own women’s healthcare portfolio through strategic collaborations and agreements. Earlier in 2020, Bayer announced the expansion of its partnership with Evotec with a new five-year, multi-target collaboration to develop multiple clinical candidates for the treatment of polycystic ovary syndrome (PCOS), the most frequent endocrine disorder in women. Bayer’s exclusive license agreement with Daré Bioscience for the US market, signed in January 2020, is focused on its investigational, hormone-free, monthly vaginal contraceptive currently in clinical development for the prevention of pregnancy.

The pharmaceuticals business development & licensing team of Bayer facilitated this transaction.

NT-814 is a non-hormonal, orally administered, potent and selective small molecule dual antagonist of both the neurokinin-1 and 3 receptors. NT-814 addresses vasomotor symptoms by modulating a group of oestrogen sensitive neurones in the hypothalamus in the brain (the KNDy neurones), that in menopausal women due to the absence of oestrogen, become hyperactive and consequently disrupt body heat control mechanisms resulting in the debilitating vasomotor symptoms of hot flashes and night sweats.