Bayer and Grünenthal have entered into a definitive agreement over the sale of Bayer’s men’s health product Nebido (testosterone undecanoate), for a total purchase price up to 500 million Euro.
According to reports, Nebido for the treatment of male hypogonadism (testosterone deficiency) is available in over 80 countries since 2004. In 2021, the product contributed sales of 117 million Euro to Bayer’s overall sales of more than 44 billion Euro.
“This divestment is part of the ongoing transformation of our pharmaceuticals business, which focuses on key areas of healthcare innovation. Its proceeds will support investments in future innovation and bring forward transformative treatment options for patients,” said Marianne De Backer, PhD, MBA, member of the executive committee and EVP, head strategy and business development & licensing and open innovation, pharmaceuticals division of Bayer AG in a statement on Thursday.
Reportedly, Grünenthal will acquire the global product rights to Nebido for an upfront purchase price of up to 500 million Euro, subject to customary closing adjustments, including the contract business in the US, where Endo Pharmaceuticals has licensed the compound under the name Aveed from Bayer.
The transaction is expected to close by the end of 2022, pending the satisfaction of customary closing conditions, including approval by the competition authorities. UBS Investment Bank acted as financial advisor to Bayer, while Allen & Overy provided legal advice, according to a report by news agency AFP.
(With inputs from AFP)