Bayer collaborates with Loxo Oncology on cancer medicine

Bayer has entered into a global collaboration with biopharmaceutical company Loxo Oncology, in a deal that could be worth more than $1 billion.

Loxo, which focuses on the development of highly selective medicines for patients with genetically defined cancers, has partnered with Bayer to develop and commercialise larotrectinib and LOXO-195, Loxo’s franchise of selective tropomyosin receptor kinase (TRK) inhibitors.

TRK inhibitors are used to treat patients whose TRK gene in a cancer cell fuses with another gene to create a TRK fusion protein.

This protein signals the cancer cells to keep growing and dividing, according to Loxo’s website.

Under the agreement, Loxo will receive a $400 million upfront payment.

The company is eligible for $450 million in milestone payments upon regulatory approvals of larotrectinib and commercial sales in certain major markets. It is also eligible for an additional $200 million if LOXO-195 meets similar criteria.

Jacob Van Naarden, chief business officer of Loxo, said: “This is a transformational collaboration for the company as we prepare for commercialisation.”

Robert LaCaze, executive vice president and head of the oncology strategic business unit at Bayer, said: “We see great potential in larotrectinib and moreover the follow-on compound LOXO-195, which may provide additional benefit for patients who might progress on an initial TRK inhibition therapy.”

He added: “These agents have the potential to fulfil the promise of precision medicine, where tumour genetics rather than tumour site of origin define the treatment approach for patients.”

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