Bayer and Apax Form New Respiratory Company

A new independent company called Aerovance, Inc., dedicated to developing and commercializing biologic products for respiratory disease, has been formed by Apax Partners (Menlo Park, CA, USA) and Bayer Pharmaceuticals Corp. (West Haven, CT, USA). Apax raised U.S.$32 million in funding, while Bayer spun out the rights to two lead products in exchange for a minority stake in Aerovance. The new company will be based in Berkeley (CA, USA).

Wolf-Dieter Busse, Ph.D., formerly senior vice president, biotechnology, Bayer Pharmaceuticals, will serve as chief executive officer of Aerovance. Bayer also spun out additional research-stage and preclinical programs in respiratory disease to Aerovance. The new company will focus exclusively on developing and commercializing biologics for severe respiratory and inflammatory diseases such as asthma, cystic fibrosis (CF), and chronic obstructive pulmonary disease (COPD). The company's two leading products are an IL4/13 receptor antagonist (AER-001) for severe asthma, and Bikunin (AER-002), a recombinant protein for CF and COPD.

"This innovative agreement with Apax Partners supports the continued development of some promising respiratory compounds identified in our former biotechnology research unit, while enabling Bayer Pharmaceuticals to continue to focus on our core therapeutic areas,” said Dr. Wolfgang Plischke, president and general manager, Bayer Pharmaceuticals.



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