July 2, 2008

Bayer Acquires Maxygen’s Hemophilia Program Assets

Bayer HealthCare has acquired Maxygen's hemophilia program assets, including a next-generation recombinant Factor VIIa protein known as MAXY-VII.

The therapeutic candidate is expected to enter Phase I clinical testing in the third quarter of 2008. The total transaction is valued at $90 million upfront with a final, potential milestone payment of $30 million. This agreement includes a non-exclusive icense to use Maxygen's MolecularBreeding technology, a novel research platform, for exploiting gene targets.

In addition, Bayer receives exclusive rights to use the technology for 30 specified gene targets in areas of strategic business interest. This novel platform allows scientists to exploit gene variation that can result in unique drug targets or novel therapeutic protein candidates.

The addition of a development candidate for patients with clotting factor inhibitors is expected to further Bayer's leadership position in hemophilia care where it offers the recombinant Factor VIII product, Kogenate (antihemophilic factor).

Russell Howard, CEO of Maxygen, said: "MAXY-VII has the potential to become the world's first approved shuffled protein therapeutic, a milestone that is likely to open up many more opportunities for Maxygen's technology. Bayer is the ideal company to move the MAXY-VII program toward that goal."