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Bayer CropScience takes Athenix for $365M, incentives

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RESEARCH TRIANGLE PARK, N.C. — Bayer CropScience has acquired Athenix Corp. in a deal that has an initial value of $365 million and could reach $400 million, Athenix's venture-capital owner said Wednesday.

Bayer said the purchase fits with its research strategy for the agriculture market.

"Within the last year, we have announced business expansions involving three new state-of-the-art research and development facilities in the United States and Canada," Friedrich Berschauer, chairman of the board of management of Bayer CropScience, said. "Athenix is a leading independent plant biotechnology company. The acquisition of Athenix therefore underpins this expansion, and allows Bayer CropScience to further expand its strong research and development capacity in North America, the most important seed technology market of the world."

Bayer said the initial deal is worth $365 million. Development milestones could add $35 million, Bayer said.

Bayer's U.S. headquarters is in Research Triangle Park. It has a research and development facility in Clayton. Athenix is based not far down T.W. Alexander Dr. from Bayer.

Athenix's directors include Dennis Dougherty of Intersouth Partners.

Boston Millennia Partners, which first backed Athenix in its Series A round, said the deal represents a tenfold profit on its investment.

"This high-value sale was the result of Athenix's unique intellectual property, as well as superior execution of several development programs by its management team," Dana Callow, managing general partner at Boston Millennia, said.

Athenix was founded in 200. It develops novel products and technologies for agricultural and industrial applications. Athenix has established an intellectual property portfolio and market access ability around enhanced plants, microbes, genes, enzymes. It has processes that emphasize two major markets: novel agricultural traits for growers, such as insect resistance, nematode resistance, herbicide tolerance, and their use for the crop production industry; and the discovery of genes and proteins for use in the sustainable chemical industry.

Based in Monheim, Germany, Bayer CropScience AG is a subsidiary of Bayer AG and had 2008 sales of about 6.4 billion euros. It is active in crop protection, non-agricultural pest control, seeds and plant biotechnology.

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