ARTICLE | Company News

Bayer, Loxo enter $1.6B cancer deal

November 14, 2017 11:56 PM UTC

Loxo Oncology Inc. (NASDAQ:LOXO) and Bayer AG (Xetra:BAYN) partnered on Tuesday to develop and commercialize larotrectinib (LOXO-101) and LOXO-195 worldwide. Loxo will receive $400 million up front, and is eligible for $1.2 billion in milestones, plus tiered double-digit royalties. Loxo slid $3.39 to $79.84 on the news as some investors were likely hoping for the company to be acquired instead of striking a partnership.

LOXO-195 is in Phase I/II testing to treat patients with cancers that have acquired resistance to initial tropomyosin receptor kinase (TRK) therapy, including larotrectinib. Data from the trial is expected next year. The candidate is a selective TRK inhibitor...