KYTHERA Biopharma gets $33.3 million in payments from Bayer

Privately-held  US biotech firm KYTHERA Biopharmaceuticals says it has received a $15.8 million payment from Bayer Consumer Care AG – part of German drug major Bayer (BAYN: DE) - under the terms of their collaboration arrangement to develop and commercialize KYTHERA’s injectable drug candidate, ATX-101, outside the USA and Canada (The Pharma Letter August 31, 2010).

In addition, KYTHERA received 14.1 million euros ($17.5 million) to fund certain further global development activities of ATX-101 under the terms of the collaboration arrangement. The payments were triggered by Bayer’s decision to pursue continued development and regulatory approvals for ATX-101 after receipt of positive results from pivotal European Phase III clinical trials.

Under the terms of the deal, KYTHERA received an upfront payment of $43 million and became eligible to receive cash payments on the achievement of certain development, manufacturing and commercialization milestones totaling up to $330 million, as well as tiered, double-digit royalties on net sales