BAYRY Bayer Aktiengesellschaft (PK)

By Colin Kellaher

Arvinas Inc. (ARVN) on Tuesday said it will collaborate with Bayer AG (BAYN.XE) to develop new human therapeutics and will launch a joint venture with the German chemical-and-pharmaceutical company aimed at agricultural applications.

Arvinas, a New Haven, Conn., biopharmaceutical company, said the deal includes more than $110 million in upfront funding from Bayer.

Under the pharmaceutical collaboration, aimed at patients with cardiovascular, oncological and gynecological diseases, Arvinas said it will receive more than $60 million in the form of an upfront payment, research-and-development funding, and a direct investment by Bayer.

Arvinas said it is eligible to receive more than $685 million in development milestones, as well as royalties, while Bayer will own the rights to novel lead structures generated by the collaboration, which will use Arvinas' Protac protein-degrader technology to develop new human therapeutics.

The companies also plan a joint venture using the Protac technology, which Arvinas said has the potential to address resistance mechanisms in plants to existing solutions to control weeds, insects and disease, in a bid to create sustainable agricultural products.

Arvinas said Bayer has committed more than $55 million in funding to the venture, which the companies will own equally.

With the closing of the transactions, Arvinas said it will have enough cash and investments to fund its planned operations into the second half of 2021.

Trading in shares of Arvinas, which closed Monday at $20.05, was halted premarket Tuesday.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

June 04, 2019 07:52 ET (11:52 GMT)

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