An announcement was made by the multinational pharma firm ‘Bayer AG’ that it has gotten complete acquisition of BlueRock Therapeutics, valuing the biotech company along with offices situated in Toronto at nearly 1 billion dollars.
Already Bayer had the ownership of 40.80% of the non-publicly held regenerative medicine firm which is based in Cambridge, Mass., and an amount of 600 million dollars is being paid for the rest 59.2% which is at present, held by BlueRock’s management, as well as, Versant Ventures, which is a venture-capital company.
The Chief Executive Officer of BlueRock, Emile Nuwaysir stated that he thinks it shows there is a presence of pretty good science in Toronto. This should give investors and entrepreneurs confidence.
It is anticipated that the deal will be closing by the end of September. An upfront payment of 240 million dollars will be paid by Bayer, as well as, another payment of 360 million dollars will be paid after the BlueRock successfully achieves pre-defined development milestones, which according to the spokesperson of BlueRock are confidential.
Versant was the one which created, as well as, incubated BlueRock, and officially it was founded three years back with an investment of 225 million dollars from the Bayer and venture-capital firm. At that time, the main aim behind the movement was to establish Canada as a global hub for the commercialization of therapies employing pluripotent stem cells. These cells have the ability to turn into any kind of cell in the human body, and it could also be used as a replacement of damaged tissues.
Later this year, therapy will be brought for Parkinson’s disease to the clinical trial by the BlueRock. Cells of the brain which are manufactured from pluripotent stem cells are implanted surgically in the zone of the brain which is responsible for motor function that normally gets deteriorated in Parkinson’s patients.