Bayer Enters License Agreement With China’s Puhe BioPharma For Cancer Drug Candidate: Retail Stays Bullish

German pharmaceutical company Bayer (BAYRY) said on Wednesday it has entered into a global license agreement with China’s Suzhou Puhe BioPharma Co. for its oral drug candidate targeting cancer cells.

Under the agreement, Bayer obtained a worldwide license to develop, manufacture, and commercialize the experimental drug, a PRMT5 inhibitor that selectively targets MTAP-deleted tumors.

The drug is an investigational agent and has not been approved by health authorities for use in any country. It is currently being evaluated as a targeted treatment option for patients with certain solid tumors.

Bayer said that the company has initiated a clinical phase 1 study of the drug and enrolled its first participant. However, it did not divulge the financial terms of the agreement.

Bayer’s Pharmaceuticals Division’s Head of Business Development and Licensing Juergen Eckhardt said the drug’s “highly selective targeting” of cancer cells while sparing healthy ones is “very promising.”

“We are looking forward to explore the potential of the PRMT5 inhibitor, which could improve outcomes for patients with MTAP-deleted tumors who often have a poor prognosis,” Eckhardt said while adding that the agreement will allow the company to strengthen its precision oncology pipeline.

Puhe BioPharma CEO Yongqi Guo also said that they see “great potential” in the treatment option and that the drug demonstrated brain penetration capabilities.

On Stocktwits, retail investor sentiment about Bayer dipped marginally but stayed in the ‘bullish’ territory (55/100), accompanied by a drop in message volume from ‘high’ to ‘normal’ levels over the past 24 hours.

Bayer shares on the Frankfurt stock exchange are up by over 19% this year but down by over 15% over the past 12 months.

Bayer’s American depositary receipts (ADRs) on the OTC markets are up by over 25% this year but down by nearly 14% over the past 12 months.

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