Bayer sells 3 cancer drugs to Genzyme for $650 million

German drugmaker Bayer AG on Tuesday entered into a strategic agreement with US-based biotechnology company Genzyme Corp to transfer some of its cancer drug portfolio to the latter in exchange for royalty payments of $650 million depending on sales.

The companies hope to get regulatory approval by the end of the second quarter, 2009.

As per the deal Genzyme would get worldwide license, distribution and development rights for leukemia drugs Campath/Alemtuzumab and Leukine, as well as others. Bayer will also return the worldwide development and distribution rights for its Alemtuzumab, approved in the US as a single agent for the treatment of B-cell chronic lymphocytic leukemia, to Genzyme.

This will allow Bayer focus on its key therapeutic areas and its Nexavar drug line.

The companies will continue their co-development partnership for Alemtuzumab for an indication in multiple sclerosis (MS).

If Alemtuzumab is approved by authorities for the treatment of MS, Bayer has an option to co-promote the product globally, the Leverkusen-based company said.