Grunenthal, a German pharmaceutical company focused on pain management and related diseases, announced on Monday that it has entered into an agreement with German pharmaceutical and life sciences company Bayer AG (ETR:BAYN) (OTC:BAYRY) to acquire Stivarga, an oral treatment for specific advanced cancers, for up to EUR375m.

Stivarga (regorafenib) is an oral multkinase inhibitor indicated for metastatic colorectal cancer, hepatocellular carcinoma and gastrointestinal stromal tumours (GIST) in patients who have already been treated with, or who cannot be given, other available treatments. It is approved and available in more than 90 markets worldwide.

"This acquisition is a strong strategic fit for Grunenthal and reflects our disciplined M&A strategy of acquiring established medicines that address clear and ongoing medical needs and create long-term value," said Gabriel Baertschi, Grunenthal CEO. "Stivarga has a well-established role in patient care and the transaction is immediately accretive to our business. By leveraging the strength of our commercial and operational expertise, we see clear opportunities to maximise the value of the medicine and support Grunenthal's long-term growth."

Subject to customary closing conditions, including regulatory approval, the acquisition is expected to close by the end of 2026 or in early 2027.