Under the terms of the license agreement with Bayer, ACT has acquired an anti-angiogenic receptor tyrosine kinase inhibitor entering Phase II clinical studies for colorectal cancer, amongst other indications. An additional program in-licensed in this agreement is a first-in-class multi-mode kinase inhibitor in late preclinical stage with application in a variety of cancer types. The company also acquired several additional preclinical stage programs in oncology. As part of the agreement, Bayer will maintain a minority equity stake in ACT Biotech.
In conjunction with the agreement, the company has raised $12 million in the first tranche of a series A financing led by NGN Capital, New York. The company has also now initiated the syndication process to raise a total of $20 million, expected to be completed in the second quarter of 2008.
Gunnar Riemann, member of the executive committee of Bayer HealthCare, said: “This license agreement allows Bayer to concentrate on its development program for Nexavar and other primary Oncology assets, while ACT will continue the development of promising, earlier clinical and preclinical assets.”