What Happened

Bayer has agreed to sell its cancer drug Stivarga (regorafenib) to German peer Grünenthal for up to €375 million ($431 million). The oral multikinase inhibitor holds patent protection until 2029 in the EU and 2030 in the U.S., but has lost exclusivity in China, where sales fell 18% in H1 2026 to €148 million due to the country's centralized tender program.

Grünenthal expects the deal to close by end of 2026 or early 2027, and projects Stivarga will contribute around €100 million to consolidated EBITDA in 2027. CEO Gabriel Baertschi called the acquisition “a strong strategic fit” aligned with the company's disciplined M&A strategy of acquiring established medicines.

Who Is Affected

Grünenthal, which has built a business model around buying cash-generating brands, adds Stivarga to a portfolio that includes Nebido (acquired from Bayer in 2022) and Movantik (acquired in 2024). The company reported record adjusted EBITDA of €500 million in 2025 and net leverage of 2.24x, positioning it for further acquisitions.

Bayer continues its multiyear transformation under CEO Bill Anderson, focusing resources on growth products like prostate cancer drug Nubeqa and kidney/heart drug Kerendia. A Bayer spokesperson said employee-related implications of the Stivarga sale are minimal and will be managed through normal transition processes.

Market Impact

Stivarga faces stiff competition across all three FDA-approved indications—liver cancer, colorectal cancer, and gastrointestinal stromal tumors (GIST). Key rivals include:

• Exelixis' Cabometyx in liver cancer
• Sanofi's Ayvakit (originally from Blueprint Medicines) for certain GIST mutations
• Exelixis' investigational zanzalintinib combined with Roche's Tecentriq in colorectal cancer, which beat Stivarga in a head-to-head phase 3 trial

The FDA is expected to rule on zanzalintinib in March 2027, potentially intensifying competitive pressure on Stivarga.

What to Watch

Grünenthal's ability to stabilize Stivarga sales and maximize value through its commercial and operational expertise will be key. The company's strong balance sheet suggests it may pursue additional acquisitions, while Bayer's divestiture strategy—including the recent sale of a minority stake in its contraceptives business—is likely to continue.

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