Bayer and Novartis biologics deal closes

In a move that results in Swiss drug major Novartis receiving a one-time transfer payment of $200.0 million, Bayer Schering Pharma, the Berlin-based health care business of Germany's Bayer AG, says it has completed the previously-announced acquisition of the former's biologics manufacturing facility in Emeryville, California, USA.

This means that Bayer has gained full control of all manufacturing and process technology used in the production of the multiple sclerosis drug Betaseron (interferon beta-1b; Marketletter April 2), the group's top-selling product, which generated total second-quarter revenues for the group of 256.0 million euros ($353.2 million).

Bayer Schering Pharma will continue to pay Novartis royalties equivalent to those being paid currently on net sales of Betaseron manufactured by Bayer at the Emeryville facilities until expiration of the original regulatory filing, development and supply agreement in October 2008. After this date, no more royalties will be due to the Swiss firm on sales of the product.