By Cecilia Butini

Bayer AG said Tuesday that it has entered a license agreement with U.S.-based biotechnology company Systems Oncology LLC to develop and commercialize its breast cancer drug ERSO with an upfront payment of $25 million.

Under the agreement, the German chemical and pharmaceutical conglomerate will also grant Systems Oncology commercialization milestone payments for a total of $345 million, it said, plus payments upon achievement of certain development and royalties on future global net sales.

ERSO is a compound currently in pre-clinical development which can be used for the treatment of metastatic Estrogen Receptor-positive breast cancer, Bayer said.

It added that the drug could represent a novel treatment option for patients with this type of cancer, given that there are only limited options available so far for patients with progressed forms of the disease. 



  Write to Cecilia Butini at cecilia.butini@wsj.com