Bayer in Genetic Medicine Alliance

German drug and chemicals giant Bayer said it will pay Millennium Pharmaceuticals Inc. $368 million to fund its research and $96.6 million more to buy a 14% stake in the U.S. drug developer, forming an alliance to develop drugs based on genetic technology. Last week, it agreed to buy Chiron Corp.’s diagnostic products unit for $1.1 billion. Its linkup with a biotechnology company follows similar alliances its rivals have formed. Cambridge, Mass.-based Millennium said that over a five-year period, it will supply 225 new “drug targets,” or proteins, from its genome research for treatment of heart disease, cancer, osteoporosis, pain, liver fibrosis, blood disorders and viral infections. Millennium shares rose $1.44 to close at $18.69 on Nasdaq.