Bayer said Aug. 5 it has acquired San Diego-based biotech Vividion Therapeutics for up to $2 billion.
Bayer will pay $1.5 billion for the company up front, with $500 million in potential success-based milestone payments.
Vividion focuses on immunology and oncology drugs, as well as developing drugs to target disease-causing proteins that are currently considered undruggable. The company said roughly 90 percent of disease-causing proteins can't be targeted by drugs on the market today.
"This acquisition is a cornerstone of our strategy to fuel our pipeline with breakthrough innovation," Stefan Oelrich, president of Bayer's pharmaceuticals division, said in a news release, adding that Bayer hopes to create "innovative therapies for patients whose medical needs are not yet met by today's treatment options."
Under the deal, Vividion will continue to operate independently.
Read the full news release here.