X-Chem, Bayer expand drug discovery collaboration

The expanded partnership could generate up to $528m for X-Chem.

The companies agreed to extend Bayer's access to X-Chem’s DEX technology which is based on DNA-encoded libraries of small molecules with over 120 billion molecules.

The new multiyear agreement will expand the scope and duration of the collaboration, which intends to discover new lead structures for complex drug targets in high unmet medical need areas.

Bayer has an exclusive option to license any programs generated through the collaboration. The company also agreed to pay X-Chem royalties and sales milestones for each successfully commercialized drug.

X-Chem CEO Rick Wagner said: “X-Chem is making significant inroads toward the discovery of small molecule drug candidates using its ultra-large screening library.

“With multiple successes across our partnerships, the DEX platform has been broadly validated to deliver novel chemical entities against a wide array of targets, including difficult targets.”

Through the DEX library, X-Chem claims that it can identify multiple series of novel, potent, and selective lead compounds at a remarkable rate of success against a range of targets, including some that earlier failed using conventional screening methods.

Previously, Bayer licensed two programs for multiple series of small molecules from X-Chem that address complex target structures like protein–protein interactions.

Image: Bayer AG's headquarters in Leverkusen. Photo: courtesy of Bayer AG.