German based pharmaceutical company Bayer AG (BAYGn) is set to purchase Britain based biotech counterpart KaNDy Therapeutics Ltd in a deal worth $425 million. Bayer made the announcement further saying the acquisition will make stronger its women healthcare business unit.
Bayer claims sales of birth control pills have been declining due to cheaper copied brands in the market. This situation have caused its women healthcare business wing to decline also, the company is looking forward for this acquisition to help its revive the business.
In addition of the initial $425 million, Bayer agreed to pay an extra $450 million as milestone payments for various development achievements.
Not long ago, KaNDy successfully completed phase 3 testing for a new non-hormonal daily pill for the relief of hot flushes and night sweats-NT-814. Bayer says the pill has the potential of generating 1 billion euros ($1.17 billion) in sales at its peak.