Bayer Schering Pharma AG, Germany, will develop a new BiTE antibody for the treatment of solid tumours in collaboration with the biopharmaceutical company Micromet, Inc. In January 2009, both companies had entered into an option, license and collaboration agreement. By exercising the option now, Bayer Schering Pharma has triggered a joint collaboration on the development of the BiTE antibody against an undisclosed solid tumour target through the completion of phase-I clinical trials, at which point Bayer will assume full control of the further development and commercialization of the antibody. BiTE antibodies are designed to direct the body's cell-destroying T cells against tumour cells, and represent a new therapeutic approach to cancer therapy.

Bayer Schering Pharma will pay Micromet an option exercise fee of 5 million Euro in January 2010. According to the agreement, Micromet will be eligible for milestone payments of up to 285 million Euro in total and up to double-digit royalties based on tiered net sales of the product. In addition it is planned to reimburse Micromet for its R&D expenses.

”BiTE antibodies represent a promising approach to cancer therapy,” said Dr Karl Ziegelbauer, head Therapeutic Research Oncology of Bayer Schering Pharma AG. “We are pleased with the progress of the program since the signing of the agreement in January of this year. We are looking forward to developing a new treatment for patients with solid tumours and to further advance novel therapeutic options in our oncology portfolio.”

Jens Hennecke, Micromet’s senior vice president for Business Development added, “Our research and preclinical development teams have done an excellent job in advancing the programme since January of this year. Bayer Schering Pharma’s early option exercise is a recognition of Micromet’s development capabilities and confirms the promise of our BiTE antibody platform.”