Bayer Signs Drug Discovery Deal With Genzyme Corp

Bayer has announced that it is to enter into a collaboration with USbiotechnology company Genzyme Corp. The companies say that the agreement will allow them to accelerate identification of new drug development candidates drawn from Genzyme's small molecule compound library and using Bayer's high-speed robotic screening methods.

Under the terms of the agreement, which is potentially worth up to $35 million in service fees and milestone payments, Bayer will pay Genzyme an undisclosed upfront payment for access to its library of more than a million small molecules, plus milestone payments as the compounds proceed through clinical trials.

Wolfgang Hartwig, head of worldwide pharmaceutical research at Bayer, described the deal as "an ideal combination" while Genzyme chief executive Henri Termeer noted that it highlighted the company's strategy of combining biotechnology with pharmaceutical drug discovery processes.