Bayer HealthCare is buying Direvo Biotech for E210 million, or almost $298 million, in cash. The firm’s subsidiary, Direvo Industrial Biotechnology, has been sold in a separate deal to a group of investors.
The company formed out of Direvo Industrial Biotechnology completed a E8 million, or $11.35 million, financing in the form of Series A preferred stock. Bankhaus Woelbern and NRW Bank led the round and was joined by TVM-Capital, Danisco, Signet Healthcare, Mulligan BioCapital, and several private investors.
The new entity holds exclusive rights to the Direvo Biotech’s platform for all areas besides biopharmaceutical development. The company currently receives administrative and technical services from the parent company until it builds up its own capabilities, which is expected to be completed within a year.
Bayer HealthCare gains a preclinical pipeline of antibodies and proteases and a high-throughput protein-engineering platform. Direvo Biotech's R&D personnel and capabilities will be integrated into Bayer Schering Pharma's organization. Its Cologne site will be maintained by Bayer Schering Pharma as a center of expertise for biologicals.