Bayer signs deal to manufacture, sell Atara's experimental cancer therapy

Germany's Bayer AG said on Monday it has signed an agreement with Atara Biotherapeutics Inc to manufacture and sell the US drugmaker's experimental cancer therapy, in a move that would expand its oncology pipeline.

The deal, part of Bayer's new strategy, came after the company said last week it was setting up an organization within its healthcare division to speed up and support cell and gene therapy development after recent takeovers.

With the agreement, the German drugmaker will get access to Atara's CAR T-cell therapy for solid tumors, ATA3271, which had shown anti-tumor activity in vitro in a pre-clinical study.

Bayer said it would make an upfront payment of $60 million to Atara.

The US drugmaker will also be eligible to receive up to $610 million upon achievement of certain milestones, as well as tiered royalties up to low double-digit percentage of net sales.

"This exciting collaboration between Atara and Bayer will accelerate the development of mesothelin-targeted CAR T-cell therapies for multiple solid tumors and helps us advance the power of our allogeneic cell therapy platform to patients as quickly as possible," Atara Chief Executive Officer Pascal Touchon said.

Atara will lead studies and process development for ATA3271, while Bayer will be responsible for subsequent clinical development and commercialization of the therapy, the German drugmaker said in a statement.