Vitrakvi and BAY 2731954 are oncology compounds, which are being developed for the treatment of advanced solid tumors harboring NTRK gene fusions in adult and pediatric patient population.
Bayer has been granted the full rights to the two compounds after exercising an option it had under a change-in-control clause in the collaboration agreement it signed with Loxo Oncology in November 2017.
The German pharma company said that the option was exercised following the completion of the $8bn acquisition of Loxo Oncology by Eli Lilly and Company.
Bayer by exercising its option will convert its joint co-promotion agreement in the US with Loxo Oncology for the two compounds to full commercialization in the country. The German pharma company is already leading ex-US regulatory activities, and global commercial activities of the TRK inhibitors.
The commercial costs and profits of Vitrakvi and BAY 2731954 which were to be shared on a 50/50 basis for the US market with Loxo Oncology as per the November 2017 agreement will be replaced by royalties to be paid by the German company. Apart from that, Bayer will continue to pay royalties on future net sales from the two products outside the US.
Due to the German company’s exercise of the option, certain licenses granted to it by Loxo Oncology will become exclusive after receipt of anti-trust clearance in the US.
Bayer oncology strategic business unit head Robert LaCaze said: “Our collaboration with Loxo Oncology was an important milestone and with the opportunity to exercise our option on Vitrakvi and BAY 2731954, we are taking the next step in our efforts to advance the future of cancer care and strengthen our leadership in this field.
“With the first-ever approved TRK inhibitor with activity against TRKA, TRKB and TRKC, Vitrakvi, and BAY 2731954 progressing through clinical development, we have two compounds in our precision oncology portfolio and we are committed to expanding this portfolio by bringing forward highly differentiated and promising additional projects.”