BERLIN (Reuters) -German pharmaceutical group Bayer announced on Tuesday a deal worth up to $1.3 billion with Kumquat Biosciences to develop the U.S.-based oncology specialist’s potential new cancer drug.

Under the agreement, Kumquat will be responsible for initiating and completing a phase-Ia study into the drug, a KRAS G12D inhibitor, while Bayer will complete development and commercial activities.

Bayer said the deal complements its precision oncology development portfolio in the areas of pancreatic, colorectal and lung cancer.

KRAS mutations occur in nearly 25% of human cancers, with the variant targeted by Kumquat’s experimental drug still lacking effective treatment options, according to a company statement.

Bayer said it has agreed to pay Kumquat up to $1.3 billion, including up

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