Bayer HealthCare will acquire Maxygen’s hemophilia program assets, including next-generation recombinant Factor VIIa protein MAXY-VII, the company’s lead candidate, which is expected to enter Phase I trials in 3Q08. The total transaction is valued at $90 million with a potential milestone payment of $30 million. This agreement includes a license to use Maxygen’s MolecularBreeding technology, a research platform for exploiting gene targets. Bayer also receives exclusive rights to use this technology for 30 specified gene targets.
   
“MAXY-VII has the potential to be an important expansion of therapeutic options for people living with hemophilia and we are pleased to add this to our global development portfolio. The agreement fits into our growth strategy for our specialty pharmaceutical business and builds on our expertise in the commercialization and manufacturing of protein therapeutics,” said Dr. Gunnar Riemann, member of the executive committee of Bayer HealthCare. “Our scientists are actively collaborating with researchers in academia and biotechnology firms to leverage novel research platforms. Access to Maxygen’s MolecularBreeding technology provides us with another tool to expand our product pipeline.”
   
“This agreement allows Maxygen to capture significant value from this preclinical asset, and puts MAXY-VII in the hands of the hemophilia leader,” said Russell Howard, chief executive officer of Maxygen. “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.”