London, UK – German pharmaceutical giant Bayer announced on Tuesday that it has entered into a significant deal with US-based biotech company Kumquat Biosciences to develop a promising new cancer drug. The agreement is valued at up to $1.3 billion (1.1 billion euros), plus additional royalties on net sales.
Under the terms of the deal, Kumquat Biosciences will be responsible for initiating and completing a study into the medicine, while Bayer will handle the subsequent development and commercial activities. The drug candidate, a small-molecule KRAS G12D inhibitor, is specifically designed to target several types of cancer where the KRAS gene has mutated. KRAS mutations occur in nearly 25 percent of human cancers, and the particular variant targeted by this experimental drug is a prevalent and oncogenic driver in pancreatic, colorectal, and lung cancers, which currently lacks effective treatment options. Kumquat Biosciences received U.S. Food and Drug Administration (FDA) clearance for its investigational new drug in July 2025, paving the way for the Phase Ia study.
This major investment in precision oncology comes as Bayer navigates a complex financial environment. The company’s pharmaceutical offerings, such as kidney medicine Kerendia and cancer drug Nubeqa, have been experiencing fast growth.
However, its agricultural chemicals unit, which includes the glyphosate-based weedkiller Roundup, continues to face long-running legal and financial challenges. The company is battling a significant number of lawsuits in the United States from plaintiffs who claim the weedkiller causes blood cancer. While Bayer maintains that scientific studies and regulatory approvals demonstrate the product is safe, it has allocated billions of dollars in provisions to address ongoing litigation. The company also recently warned of uncertainty stemming from U.S. tariffs after President Donald Trump threatened to ramp up levies on pharmaceuticals, adding another layer of complexity to its business outlook.
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