Bayer Pays Up to $1.3 Billion for Kumquat KRAS Cancer Drug

Bayer AG has agreed to pay privately held Kumquat Biosciences Inc. as much as $1.3 billion for global rights to the U.S. biotech’s investigational KRAS G12D inhibitor, an early-stage therapy aimed at pancreatic, colorectal and lung cancers. The total consideration combines an undisclosed upfront fee with clinical and commercial milestone payments; Kumquat will also receive tiered royalties on future sales and retains an option to negotiate a profit-loss sharing arrangement in the United States. Under the agreement announced Tuesday, San Diego-based Kumquat will complete a Phase Ia study of the small-molecule drug, which received U.S. Food and Drug Administration clearance last month to begin human testing. Bayer will assume responsibility for later-stage trials, regulatory filings and worldwide commercialization. KRAS mutations are present in about one-quarter of all cancers, yet no approved treatment targets the G12D variant, making the molecule a potentially significant addition to precision-oncology pipelines. The transaction is the latest move by Chief Executive Officer Bill Anderson to reinvigorate Bayer’s pharmaceuticals division as revenue from flagship products such as blood thinner Xarelto and eye drug Eylea faces rising competition. Bayer’s oncology portfolio currently hinges on prostate-cancer therapy Nubeqa, and the company has been pursuing mid-sized deals to broaden its pipeline while managing the debt burden stemming from its 2018 Monsanto acquisition.