BAYER SIGNS CANCER DEAL WITH ONYX

Bayer AG's US subsidiary Miles Laboratories has signed an agreement with Onyx Pharmaceuticals of California for a five-year research and development program with the objective of discovering new drugs which inhibit the ras oncogene and prevent tumor growth.

Under the agreement, Miles will fund the joint R&D program to the tune of $25 million, and take responsibility for funding all preclinical development costs. In return, Miles gains worldwide rights for the clinical development and marketing of products emerging from the collaboration. In all markets with the exception of Japan, Onyx retains the option to fund up to half the clinical development costs in return for up to half the profits from any products which reach the market.

In addition, Miles will make a $13.5 million minority equity investment in Onyx, and Wolf-Dieter Busse, head of pharmaceutical research at Bayer, will join the Onyx board of directors.