BAYER AG said yesterday that its Health Care unit has acquired Direvo Biotech AG, a leader in protein engineering, in a deal valued at 210 million euros (US$298 million).

Leverkusen-based Bayer said that the transaction would strengthen its competence in biological-based drugs in its pharmaceutical division Bayer Schering Pharma. The deal is expected to close at the end of September.

Cologne-based Direvo Biotech's unique and proprietary protein engineering platform uses technologies for the rapid discovery of biological-based pharmaceuticals.

The platform already has been successfully applied to a wide range of proteins, including therapeutic antibodies and enzymes that will be added to the drug pipeline of Bayer Schering Pharma, according to the statement.

For example, Direvo's OptiMIRA line of antibodies can be used to treat conditions including rheumatoid arthritis, Crohn's disease, and psoriasis, according to Direvo's Website.

Bayer said it intends to integrate Direvo's research and development personnel into the company's own research department.

"Today Bayer Schering Pharma is among the top 10 (biological drug) companies in the world," said Arthur Higgins, the chief executive of Bayer Health Care. "We are committed to further strengthen our biologicals portfolio, and Direvo's leadership in protein engineering provides promising opportunities for further business growth."

Shares of Bayer went up 2.2 percent at 57.15 euros in Frankfurt in morning trading yesterday.