Maxygen Inc. (MAXY)

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Maxygen selling hemophilia unit to Bayer
Wednesday July 2, 10:07 am ET
Maxygen selling hemophilia unit to Bayer's health care unit for $90 million upfront

NEW YORK (AP) -- Bayer's health care unit is buying Maxygen Inc.'s hemophilia unit for $90 million upfront and potential future fees of up to $30 million in a move to expand its specialty pharmaceutical business, the companies said Wednesday.

Hemophilia is an inherited bleeding disorder caused by deficient or defective blood clotting proteins. Roughly 20 percent to 30 percent of patients with hemophilia develop antibodies to current therapies, so a mechanism called Factor VIIa is used to help these individuals form clots.

Germany's Bayer will gain the Redwood City, Calif.-based biotechnology company's lead drug candidate MAXY-VII, along with a license to use the company's underlying gene targeting technology.

MAXY-VII is expected to move to early-stage clinical studies in the third quarter. Bayer already sells Factor VIII product Kogenate for the treatment of hemophilia A, which affects about 1 in 10,000 births.

Shares of Maxygen surged 90 cents, or 25.6 percent, to $4.41 during morning trading. The stock has traded between $3.28 and $9.56 over the last 52 weeks.