Bayer and X-Chem, Inc. have entered an expanded global drug discovery collaboration across multiple therapeutic areas and target classes. Bayer has expanded access to X-Chem's DEX technology, which is based on DNA-encoded libraries of small molecules with more than 120 billion molecules. The collaboration aims to discover lead structures for complex drug targets in areas of high unmet medical need.
 
X-Chem will receive an upfront payment, research and development funding, as well as development milestones totaling as much as $528 million. Bayer has an exclusive option to license any programs under the collaboration. X-Chem will also receive royalties and sales milestones.
 
"Bayer and X-Chem have built a strong relationship delivering outcomes that have exceeded expectations," said professor Andreas Busch, member of the executive committee of Bayer AG's Pharmaceuticals Division and Head of Drug Discovery. "We have identified the DEX™ platform as a highly valuable extension for our drug discovery efforts. We are looking forward to working with X-Chem on some of our highest-priority targets, for which X-Chem's platform is ideally suited." 
 
"X-Chem is making significant inroads toward the discovery of small molecule drug candidates using its ultra-large screening library," said Rick Wagner, Ph.D., chief executive officer of X-Chem. "We are fortunate to have Bayer as a major strategic partner, and we are looking forward to expanding this strong and successful relationship. X-Chem is excited to continue working with Bayer on a wider array of diseases and conditions with significant unmet medical needs."
 
The companies have been working together since 2012 and Bayer has licensed two programs of small molecules from X-Chem that address complex target structures such as protein:protein interactions. The new multi-year collaboration expands the scope and duration of the partnership.