Bayer’s $2B deal for AskBio follows biotech’s decision to bet on its own pipeline

Gene therapy company AskBio chose last year to raise VC cash and invest in its pipeline rather than continue to rely solely on licensing and transaction revenues that had kept it afloat since 2001. That decision primed the biotech for its takeout by Bayer on Monday for $2 billion up front in a deal that will yet preserve some of the company’s autonomy — and could deliver twice as much money to shareholders if milestones are met.

The acquisition gives Bayer AG (Xetra:BAYN) wholly-owned clinical programs for Pompe disease and heart failure, a partnered clinical program for Parkinson’s disease, and a preclinical pipeline that includes programs for musculoskeletal and CNS disorders. The pharma also receives vector, promoter and manufacturing technologies, and a revenue-generating CMO business from Asklepios BioPharmaceutical Inc. — informally, AskBio...