(Bloomberg) -- Bayer AG signed a collaboration and licensing agreement with Boston-based NextRNA Therapeutics in a bid to develop new cancer medicines.
The companies will work together on developing two small-molecule programs using NextRNA’s technology, which targets “long non-coding RNAs” that are associated with diseases including cancer.
Under the terms, Bayer will initially pay as much as $547 million depending on various milestones, with NextRNA also entitled to tiered royalties on net sales of successful products.
Bayer’s pharma division is looking to navigate the patent expirations of two of its best-selling medicines, the bloodthinner Xarelto and eye medicine Eylea. It’s relying on growing demand for cancer drug Nubeqa and kidney medicine Kerendia, and has high hopes for new menopause treatment elinzanetant.
In recent years, the pharma business has looked to small-scale deals and partnerships to create new products in the cell and gene therapy spaces, among other areas.
Bayer is constrained in its ambitions on the pharma front because of its $63 billion takeover of agriculture company Monsanto in 2018. That deal saddled the company with high debt levels and huge legal headaches, including the US litigation over the weedkiller Roundup.
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