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    Breaking News

    Loxo Oncology, Bayer Enter Global Collaboration

    The agreement totals up to $1.55B in upfront, regulatory, and commercial milestones

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    11.14.17

    Loxo Oncology, Inc., a biopharmaceutical company involved in the development of medicines for patients with genetically defined cancers, has entered into a collaboration with Bayer to develop and commercialize larotrectinib and LOXO-195, Loxo Oncology’s franchise of highly selective TRK inhibitors for patients with TRK fusion cancers. 

     

    Under the agreement, the companies will share development costs on a 50/50 basis, and Loxo Oncology will receive a $400M upfront payment. They are also eligible for $450M in milestone payments upon larotrectinib regulatory approvals and first commercial sale events in certain markets, and an additional $200M in milestone payments upon LOXO-195 regulatory approvals and first commercial sale events in certain markets. Loxo Oncology will lead global development activities and U.S. regulatory activities, while Bayer will lead ex-U.S. regulatory activities, and worldwide commercial activities.

     

    In addition, Bayer will pay Loxo Oncology a $25M milestone upon achieving a certain U.S. net sales threshold. Outside of the U.S., Bayer will pay Loxo Oncology tiered, double-digit royalties on net sales, and milestones totaling $475M. 


    “Bayer has a history of successful co-promotion efforts with emerging biopharmaceutical companies and we are confident that their oncology team has the global reach and expertise, including an existing field force dedicated to cancer, to complement our existing commercial plans.” said Jacob Van Naarden, chief business officer of Loxo Oncology.
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