Pharmaceutical and chemical producer Bayer acquired US-based stem cell treatment developer and portfolio company BlueRock Therapeutics yesterday in a deal that could value it at up to $1bn.
BlueRock is looking to engineer stem cells using its proprietary induced stem cell (iPSC) platform in order to treat neurological, immunological and heart diseases. Its drug candidates include a potential Parkinson’s disease treatment it aims to advance into the clinic by the end of 2019.
The company was founded by venture capital firm Versant Ventures in 2016 and emerged from stealth the same year with $225m in series A funding from Versant and Bayer’s Lifescience Center, which owned a 40.8% stake prior to the acquisition deal.
The terms of the transaction involve Bayer paying a total of up to $600m to acquire the shares in BlueRock it did not already own, investing up $240m upfront that will be followed by preclinical and clinical milestone payments that could reach $360m.
Stefan Oelrich, president of Bayer’s pharmaceuticals division, said: “This acquisition marks a major milestone on our path towards a leading position in cell therapy.
“In line with our strategy to ramp up our investments in technologies with breakthrough innovation potential, we have decided to build our cell therapy pipeline based on BlueRock Therapeutics’ industry-leading iPSC platform. Ultimately, we are joining forces to deliver new treatment options for medical needs that are still unmet today.”
BlueRock sourced foundational technology from the Toronto-based University Health Network’s McEwen Stem Cell Institute in addition to cancer research institution Memorial Sloan Kettering’s Stem Cell Center.
