By Cecilia Butini

Bayer AG said Monday that is has entered into an exclusive world-wide license agreement with U.S.-based company Atara Biotherapeutics Inc. to develop cell therapies for the treatment of tumors with an upfront payment of $60 million.

Under the terms of the agreement, the German chemical and pharmaceutical conglomerate will also provide Atara with milestone payments for development, regulation and commercialization for a total of $610 million. Bayer will also pay tiered royalties up to low double-digit percentage of net sales, it said.

The agreement is for developing therapies for solid tumors using chimeric antigen receptor T-cells, or CAR T-cells, meaning cells which are specifically modified to attack cancer cells. The two companies will particularly focus on a T-cell immunotherapy to treat tumors such as plural mesothelioma and non-small-cell lung cancer.

Bayer said as part of the transaction it will also reimburse Atara on translational and clinical manufacturing services. The German company for a limited period of time will also have nonexclusive rights to negotiate a license for additional CAR T-product candidates by Atara, it said.

Write to Cecilia Butini at cecilia.butini@wsj.com

(END) Dow Jones Newswires

December 07, 2020 01:36 ET (06:36 GMT)

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