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ARM Innovation Hub
27 August, 2020 - 12:10 By Tony Quested

Bayer commits $1bn+ to KaNDy Therapeutics swoop

Global healthcare giant Bayer has committed more than $1 billion to acquiring KaNDy Therapeutics, a Stevenage-based clinical-stage biotech company, to expand its product pipeline in the sector.

KaNDy recently completed the Phase IIb with NT-814, a once-daily, oral neurokinin-1,3 receptor antagonist, publishing positive data for the treatment of vasomotor symptoms of the menopause. 

The start of a Phase III clinical trial is expected for 2021. Once approved, the compound could generate peak sales potential of more than €1 billion globally. 

Bayer is potentially paying more than that for KaNDY. It will pay an upfront consideration of $425 million, potential milestone payments of up to $450m 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. 

“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 of 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.”

Dr Mary Kerr, co-founder and CEO of KaNDy Therapeutics  added: “Bayer has been our preferred partner due to its leading position in the area of women’s healthcare. 

“We believe that under the ownership of Bayer, this potential novel medicine can be optimally developed to become an important non-hormonal treatment option for women suffering debilitating symptoms of the menopause.” 

Morgan Stanley is financial adviser to Bayer while Linklaters is legal counsel. Goldman Sachs International is financial advisrr to KaNDy Therapeutics and Goodwin legal counsel. 

KaNDy Therapeutics was founded in 2017 as a spin-off from NeRRe Therapeutics Ltd. It is led by an experienced management team and backed by internationally recognised life sciences investors: Advent Life Sciences, Fountain Healthcare Partners, Forbion Capital Partners, OrbiMed and Longitude Capital. 

The technology business is based at the state-of-the-art Stevenage Bioscience Catalyst, a leading location for companies to develop and commercialise cutting edge therapeutics. 

NT-814 NT-814 is an orally administered, non-hormonal 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).

In menopausal women – due to the absence of oestrogen – these neurones become hyperactive and consequently disrupt body heat control mechanisms resulting in the debilitating vasomotor symptoms of hot flushes and night sweats.

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