Loxo’s Tissue-Agnostic Approach Brings $400m Upfront From Bayer

The German pharma signs collaboration to develop and commercialize larotrectinib and a follow-on, under a structure that enables Loxo to co-promote in the US and build commercial infrastructure.

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Although some investors are disappointed by the lack of a straightforward buyout, market analysts agree that Loxo Oncology Inc. achieved victory in multiple ways under an agreement with Bayer AG to collaborate on global development and commercialization of the selective TRK inhibitor larotrectinib and a follow-on compound.

The transaction announced Nov. 14 brings Loxo $400m up front with the potential for more than $1bn in milestones plus...

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