Biotech Values

[DewDiligence]

Bayer sells ex-US rights to KYTH’s ATX-101:

http://finance.yahoo.com/news/kythera-acquires-rights-atx-101-200500968.html

Under the new agreement, KYTHERA Holdings Ltd., a wholly-owned Bermuda subsidiary of KYTHERA Biopharmaceuticals, Inc., acquired rights to develop and commercialize ATX-101 outside the U.S. and Canada. Bayer will receive $33 million in KYTHERA common stock, plus a $51 million note, payable no later than 2024. Bayer is also eligible to receive certain long-term sales milestone payments on annual sales outside of the U.S. and Canada.

ATX-101 is the “double-chin” drug. As previously noted on this board, I’m skeptical of the commercial prospects. Today's deal shows that Bayer generally agrees, although they don't think the ATX-101 program is worthless.