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FRANKFURT, Germany, Aug 12, 2025 (BSS/AFP) - German pharmaceutical giant Bayer said Tuesday it had struck a deal valued at up to $1.3 billion (1.1 billion euros) with a US-based biotech company to develop its prospective cancer drug.

Under the agreement, Kumquat Biosciences is responsible for initiating and completing a study into the medicine while Bayer will complete development and commercial activities.

Kumquat will receive up to $1.3 billion and additional royalties on net sales, Bayer said.

The drug candidate is aimed at treating several types of cancer in which the KRAS gene has mutated.

KRAS mutations occur in nearly 25 percent of human cancers yet the variant that Kumquat's experimental drug targets still lacks effective treatment options, according to Bayer.

The mutations are found in pancreatic, bowel and lung cancers.

Some of Bayer's other pharmaceutical offerings, such as kidney medicine Kerendia and cancer drug Nubeqa, have enjoyed fast growth in recent times.

However its agricultural chemicals unit continues to battle long-running problems linked to the glyphosate-based weedkiller Roundup.

The group has faced a flood of legal cases in the United States over claims the weedkiller causes blood cancer. Bayer says scientific studies and regulatory approvals show that it is safe.

The company also recently warned of uncertainty stemming from US tariffs after President Donald Trump threatened to ramp up levies on pharmaceuticals.