Law firm Stephenson Harwood LLP has advised Bicycle Therapeutics plc on its recent strategic collaboration agreement with Bayer to discover and develop Bicycle radioconjugates for multiple oncology targets.

Under the terms of the agreement, Bayer and Bicycle will collaborate on the development of bicyclic peptides for multiple oncology targets. Bicycle will use its proprietary phage platform to discover and develop bicyclic peptides, and Bayer will be responsible for, and fund, all further preclinical and clinical development, manufacturing, and commercialisation activities. Bicycle will receive a US$45 million upfront payment. It is also eligible to receive development and commercial-based milestone fees, totalling up to US$1.7 billion, as well as tiered royalties on Bicycle-based medicines commercialised by Bayer.

The closing of the transaction is subject to clearance under the U.K. National Security and Investment Act (NSIA) 2021.

UK-headquartered Bicycle Therapeutics is a clinical-stage biopharmaceutical company developing a novel class of medicines, referred to as Bicycles, for diseases that are underserved by existing therapeutics. Bayer is a global enterprise with core competencies in the life science fields of health care and nutrition.

The Stephenson Harwood team was led by head of life sciences Alexandra Pygall, who was supported by associate Briony Byrne. Further support was provided by partner Naomi Leach and associate Anne Stoffels. Partners Shofiq Miah and Kate Worthington advised on the tax aspects; partner Marta Garcia and associate Will Spens advised on the NSIA filing; and partner Kristian Shearsby provided corporate advice.