Bayer to sell cancer drug Stivarga for $431 million amid intensifying competition

German drugmaker Bayer will sell its cancer drug Stivarga to fellow German pharmaceutical company Grünenthal for up to $431 million.

According to Fierce Pharma on the 22nd (local time), Grünenthal announced the previous day that it would acquire Stivarga, an oral multikinase inhibitor, for up to 375 million euros ($431 million).

Stivarga’s patent protection is expected to continue through 2029 in the European Union (EU) and 2030 in the United States. However, sales have already been hit by the end of its patent exclusivity in China.

Bayer said Stivarga sales fell 18% to 148 million euros in the first half of this year, citing the impact of China’s centralized procurement program for off-patent drugs.

Gabriel Baertschi, Grünenthal’s CEO, described the acquisition as “a strong strategic fit that reflects our disciplined M&A strategy of acquiring established medicines that address clear and sustained medical needs and create long-term value.”

Grünenthal expects the deal to close in late 2026 or early 2027 and estimates that Stivarga will contribute about 100 million euros to EBITDA next year.

Stivarga had faced pressure even before China’s volume-based procurement began in 2025. In 2025, Bayer transferred local promotional rights for Stivarga and another older cancer drug, Nexavar, to Chinese company Yifan Pharmaceutical.

Stivarga faces intense competition across all three indications approved by the U.S. Food and Drug Administration (FDA): liver cancer, colorectal cancer and gastrointestinal stromal tumors (GIST).

In liver cancer, where patients may have received Nexavar, Exelixis’ Cabometyx is considered a strong competitor. In GIST, Sanofi’s Ayvakit targets specific mutations.

In liver cancer, Exelixis’ investigational drug zanzalintinib, in combination with Roche’s Tecentriq, showed an advantage over Stivarga in a phase 3 clinical trial, and the FDA is expected to decide on approval in March 2027.

Under CEO Bill Anderson, Bayer has carried out a multiyear restructuring since 2024, focusing on commercializing growth products such as the prostate cancer treatment Nubeqa and the kidney disease and heart treatment Kerendia.

The Stivarga sale comes weeks after Bayer signed a preliminary agreement to sell its stake in its long-acting contraceptive business to asset manager Apollo for 3 billion euros.

Grünenthal has built a business model around acquiring established, cash-generating brands to fund research and development (R&D) and stabilize revenue. In 2022, it acquired Bayer’s hypogonadism treatment Nebido for 500 million euros, and in 2024 it acquired the opioid-induced constipation treatment Movantik for $250 million.

Grünenthal posted a record adjusted EBITDA of 500 million euros in 2025, while operating cash flow rose 46% to 309 million euros.