Bage to buy biopharmaceutical company for $2 B

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Bage to buy biopharmaceutical company for $2 B

The historic headquarters of German pharmaceutical and chemical manufacturer Leverkusen is seen in Bayer AG in Leverkusen.

FRANKFURT - Bayer said it bought biopharmaceutical company Vividion Therapeutics for up to $2 billion on Thursday to boost its ability to develop new treatments and raise the value of its drug pipeline.

The transaction, expected to close during the third quarter of the company, includes a $1.5 billion upfront payment and possible milestone payments of up to $500 million, the agriculture and pharmaceuticals group said in a statement.

Bayer described the impending discovery of drug candidates for proteins that are considered undruggable as a great challenge in drug discovery.

Vividion technology is the most sophisticated in the industry and it has demonstrated its ability to target drug candidates that can target challenging proteins, Bayer Board member Stefan Oelrich said.

About 90% of proteins cause diseases can be met by current therapies, said Vividion CEO Jeff Hatfield.

In the transaction, Bayer was represented by Credit Suisse and Baker McKenzie, while Centerview Partners and Cooley LLP served as advisors to Vividion.