Bayer HealthCare sells off ATX-101 rights to Kythera

Bayer HealthCare has announced that it will be returning the commercial rights to the developmental therapy ATX-101 to Kythera.

The company licensed rights to the drug outside of the US and Canada in 2010. ATX-101 is a proprietary formulation of a purified synthetic version of deoxycholic acid, currently in late-stage development for the reduction of submental fat, commonly known as double chin.

Although Bayer retains confidence that ATX-101 will fulfil an unmet global health need, the company's strategic focus has changed over the last four years.

Additionally, the new agreement sees the firm receiving a share of common stock in Kythera, while it is also eligible to receive certain long-term milestone payments based on annual sales of the drug outside the US and Canada.

Erica Mann, global president of Bayer HealthCare's consumer care division, said: "Our decision to take an equity position in Kythera is a testament to our belief in the potential for ATX-101, and will allow us to participate in Kythera's future success."

Currently, Bayer HealthCare's short-term strategy is focused on increasing the market traction of the newly-launched drugs Xarelto, Eylea, Stivarga, Xofigo and Adempas, which offer a combined peak annual sales potential of at least 7.5 billion euros (6.24 billion pounds).