Published by Global Banking & Finance Review®
Posted on August 12, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleBayer and Kumquat Biosciences enter a $1.3 billion deal to develop a new cancer drug, focusing on KRAS G12D inhibitors for pancreatic, colorectal, and lung cancers.
BERLIN (Reuters) -German pharmaceutical group Bayer announced on Tuesday a deal worth up to $1.3 billion with Kumquat Biosciences to develop the U.S.-based oncology specialist's potential new cancer drug.
Under the agreement, Kumquat will be responsible for initiating and completing a phase-Ia study into the drug, a KRAS G12D inhibitor, while Bayer will complete development and commercial activities.
Bayer said the deal complements its precision oncology development portfolio in the areas of pancreatic, colorectal and lung cancer.
KRAS mutations occur in nearly 25% of human cancers, with the variant targeted by Kumquat's experimental drug still lacking effective treatment options, according to a company statement.
Bayer said it has agreed to pay Kumquat up to $1.3 billion, including upfront, clinical and commercial milestones, and additional tiered royalties on net sales.
Kumquat, which since its launch in 2019 has also signed agreements with Eli Lilly and Takeda, retains an exclusive option to negotiate for participating in profit-loss sharing in the United States under the deal with Bayer.
"This collaboration provides Kumquat the financial resources to accelerate its broader clinical pipeline for long-term value," Kumquat CEO Yi Liu said in a statement shared by Bayer.
(Reporting by Rachel More; editing by Matthias Williams)
Bayer's deal with Kumquat is worth up to $1.3 billion, which includes upfront payments, clinical and commercial milestones, and additional tiered royalties on net sales.
The drug being developed is a KRAS G12D inhibitor, targeting a mutation that occurs in nearly 25% of human cancers, particularly in pancreatic, colorectal, and lung cancer.
Kumquat will be responsible for initiating and completing a phase-Ia study into the drug, while Bayer will handle the development and commercial activities.
This collaboration provides Kumquat with the financial resources to accelerate its broader clinical pipeline, aiming for long-term value.
Kumquat retains an exclusive option to negotiate for participating in profit-loss sharing in the United States under the agreement.
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