Japan based biopharma company PeptiDream Inc. has announced that it has entered into a multi-target discovery collaboration with Germany-based Bayer AG.

Under the agreement, PeptiDream will use its proprietary Peptide Discovery Platform System (PDPS) technology to identify macrocyclic/constrained peptides against multiple targets of interest selected by Bayer, and to optimize hit peptides into therapeutic peptides or small molecule products.

Bayer also holds an exercisable option to negotiate for an extension of the license to peptide-drug conjugate (PDC), diagnostic, bioimaging, and agricultural use and applications and will have the right to develop and commercialize all compounds resulting from the collaboration.

Under the terms of the agreement, PeptiDream would receive an undisclosed upfront payment and research funding and is eligible to receive preclinical, clinical, and commercialization milestone payments potentially totaling up to $1.11 billion (¥124.5 billion). In addition, PeptiDream is eligible to receive royalties on sales of any products that arise from the collaboration.

Patrick Reid, CEO of PeptiDream Inc said, “We are extremely excited to be initiating this discovery alliance with Bayer. This is one of the broadest discovery deals PeptiDream has entered into, covering peptide therapeutics and small molecule therapeutics, and options to peptide drug conjugates (PDCs), diagnostic agents, bioimaging agents, and more. This deal further exemplifies the power of our PDPS platform and the impact it is having on early drug discovery. We greatly look forward to working with Bayer to leverage both companies’ expertise and capabilities to discover and development the next generation of first-in-class and best-in-class therapeutics.”