Bayer and Atara Biotherapeutics have struck a deal to develop mesothelin-directed chimeric antigen receptor (CAR) T-cell therapies for treating solid tumors, which work by targeting the tumor-associated antigen mesothelin often overexpressed in cancer cells.

Per the deal, Atara will spearhead preclinical studies for armored allogeneic T-cell immunotherapy candidate, ATA3271, while Bayer will submit the Investigational New Drug application and oversee follow-up clinical development and commercialization.

The deal also calls for Atara to continue development of candidate ATA2271, aimed at targeting high mesothelin-expressing tumors found in malignant pleural mesothelioma and nonsmall-cell lung cancer. The drug is currently being evaluated in a phase 1 study.

South San Francisco-based Atara will receive an initial $60 million from Bayer and is eligible to receive an additional $610 million and tiered royalties in milestone-based payments.