FRANKFURT (AP) -- German drugmaker Bayer AG said Tuesday it has entered a strategic agreement to transfer some of its cancer drug portfolio to U.S.-based Genzyme Corp. in exchange for royalty payments. At the same time, it established new arrangements with Genzyme for a multiple sclerosis drug.
The Leverkusen-based company said Cambridge, Massachusetts-based Genzyme would get worldwide license, distribution and development rights for leukemia drugs Campath and Leukine, as well as others.
In return, Bayer will receive royalties of up to $650 million depending on sales, and focus its cancer drug resources on its Nexavar drug line.
Bayer will also return the global development and distribution rights for its Alemtuzumab, a multiple sclerosis drug the two companies are still developing together, to Genzyme.
The two companies will continue their co-development partnership for the drug, Bayer said. If Alemtuzumab is approved by authorities for the treatment of multiple sclerosis, Bayer has an option to co-promote the product globally.
If that is the case, Bayer will receive royalties of between 20 percent to 35 percent of sales to a maximum of $1.25 billion. Bayer may also receive further payments if Genzyme doesn't buy out its milestone obligation of between $625 million and $900 million in 2020, Bayer said.
Shares of Bayer were down 1.8 percent at euro35.60 ($47.34) in Frankfurt afternoon trading.