algeta
a fund that is the company’s largest shareholder and senior algeta managers, together representing 14 percent of algeta’s share capital, planned to accept, algeta said .
“we believe the offer recognizes the strategic value of algeta and delivers a considerable cash premium to our shareholders. ” stein holst annexstad, algeta’s chairman, said .
7. buyer: bayer target: algeta price: $ 2. 9 billion
bayer wins cancer firm algeta with raised $ 2. 9 billion bid | reuters
algeta said on thursday that its board unanimously recommended shareholders accept bayer’s sweetened offer .
for more: fda oks pinpoint prostate cancer radiation drug xofigo from bayer, algeta bayer bags algeta' s cancer drug portfolio for $ 2. 9b bayer' s $ 2. 4b bid to buy algeta fits neatly with cancer drug strategy
bayer bags algeta' s cancer drug portfolio for $ 2. 9b | fiercebiotech
an algeta buyout, though, would fall right into bayer' s comfort zone .
bayer in talks to buy cancer partner algeta for $ 2. 4 billion - livemint
algeta us and bayer healthcare are co - promoting the product in the us. bayer paid a €50m milestone payment to algeta following the launch of the product in the us .
algeta was advised by bioscience managers limited (london, uk) during this financing round .
bayer to acquire norway' s algeta for cancer drug xofigo in $ 2. 9b deal
bayer to acquire drug maker algeta in $ 2. 9 billion deal - the new york times
stein holst annexstad, chairman of the board of directors of algeta, added:' we believe the offer recognises the strategic value of algeta and delivers a considerable cash premium to our shareholders .
) has won backing from the board of algeta algeta. ol, its partner for a new prostate cancer treatment, for an increased $ 2. 9 billion offer to buy the norwegian company .
shares of algeta rose 1. 5 percent to 359 norwegian kroner in trading early tuesday in oslo .
updated: bayer' s $ 2. 4b bid to buy algeta fits neatly with cancer drug strategy
algeta is a company focused on developing novel targeted therapies for patients with cancer based on its alpha - pharmaceutical platform. the company is headquartered in oslo, norway, and has a us subsidiary, algeta us, llc, based in cambridge, ma performing commercial marketing operations in the us. algeta is listed on the oslo stock exchange (ticker: algeta). for more information please visit urltoken .
bayer to acquire norway' s algeta for cancer drug xofigo in $ 2. 9b deal | ubc
algeta’s largest shareholder, the venture capital firm healthcap, and algeta’s directors have agreed to tender their shares. the transaction is subject to regulatory approval and shareholders must tender a minimum of 90 percent of the company’s stock .
goldman sachs is algeta’s financial adviser, and skadden, arps, slate, meagher & flom and wikborg, rein & co. are acting as algeta’s legal advisers. deutsche bank served as bayer’s financial adviser on the transaction .
algeta scientists showed that injections of radium into the blood led to a concentration in bone and a positive impact on patient survival. from 2004, abingworth followed algeta closely before leading a major recapitalisation of the company in 2009 .
updated: bayer' s $ 2. 4b bid to buy algeta fits neatly with cancer drug strategy | fiercebiotech
) has clinched a $ 2. 9 billion deal to take over norwegian cancer drug maker algeta algeta. ol after being tendered 92. 17 percent of the shares in a cash offer, the companies said on monday .
bayer has reached an agreement to buy norwegian pharma company algeta after raising its offer to around $ 2. 9bn .
bayer’s increased bid is at a 48 percent premium to algeta’s three - month volume weighted average stock price on november 25 .
the offer, which is expected to go to algeta shareholders in january once it has been cleared by the oslo stock exchange, is subject to a minimum acceptance of 90 percent of algeta’s share capital, as well as approval by antitrust authorities .
management of the two companies have now agreed a nok 362 per share deal for algeta, which will now be offered on a voluntary basis to the norwegian firm' s shareholders. the bid represents a premium of 37 per cent over algeta' s closing price on november 25 when the initial offer was made. this morning algeta was trading at around nok 359 .
bayer is offering algeta shareholders a smaller premium than other biotechnology companies have gotten over the past five years. photo: bloomberg
algeta is also developing other technologies for delivering alpha - pharmaceuticals. these include methods to enhance the potency of therapeutic antibodies and other tumor - targeting molecules by linking them to the alpha particle emitter thorium - 227. the company is headquartered in oslo, norway, and was founded in 1997. algeta listed on the oslo stock exchange in march 2007 (ticker: algeta) .
- potential deal value of $ 800 million (eur560m *) plus tiered double digit royalties - algeta to receive $ 61 million (eur42. 5m) cash upfront, followed by development and sales milestones - algeta retains option for co - promotion and profit - sharing in usa - algeta and bayer will jointly develop alpharadin, with bayer contributing a substantial majority of the costs of future development
in september 2009, algeta entered into an global agreement with bayer healthcare ag for the development and commercialization of alpharadin. as part of the agreement, algeta retains an option to co - promote alpharadin in the united states and to share profits from future sales .
algeta asa (ose: algeta), the cancer therapeutics company, announces today that it has entered into a global agreement with bayer for the development and commercialization of algeta' s first - in - class alpha - pharmaceutical, alpharadin. alpharadin is currently being evaluated in a global phase iii trial in men with hormone - refractory prostate cancer (hrpc) that has spread to the bone .
the uk future technologies fund contributed to the fund. in addition to avila advent has backed cellnovo, respivert, thiakis and algeta .
bayer has won the backing of the board of directors of algeta to support its bid to acquire the norwegian developer of cancer drugs .
algeta asa is a cancer therapeutics company built on world - leading, proprietary technology. algeta is developing a new generation of targeted cancer therapeutics (alpha - pharmaceuticals) that harness the unique characteristics of alpha particle emitters and are potent, well - tolerated and convenient to use .
“when the company was bought by bayer, there were a lot of competencies and resources that were allocated to other promising companies. so other companies can capitalize on [ the worked performed in algeta ]. the inventors of algeta have started two new companies, ” benedicte bakke explains .
the bayer group plans to further strengthen its oncology portfolio with the acquisition of norwegian pharmaceutical company algeta asa, oslo, according to a press release. bayer has already collaborated with algeta to develop and commercialize the cancer drug xofigo. the planned acquisition would give bayer full control over xofigo .
the first commercial sale of xofigo triggers a eur 50 million milestone payment to algeta from bayer under the terms of the 2009 development and licensing agreement. bayer has worldwide exclusive marketing rights for xofigo. algeta us, llc and bayer healthcare are co - promoting the product in the us .
in september 2009, algeta signed an agreement with bayer for the development and commercialization of xofigo. under the terms of the agreement, bayer will develop, apply for health authority approvals worldwide and commercialize xofigo globally. algeta us, llc is co - promoting xofigo with bayer in the us .
algeta said in march that there was broad industry interest in its thorium - 227 technology. thorium - 227 is an alpha - particle emitting element that can be linked to monoclonal antibodies to create localized tumor - killing cancer treatments. algeta is working with sanofi, ablynx nv, affibody ab and
for bayer, algeta fits with chief executive marijn dekkers’ strategy of driving growth by building up the pharmaceuticals division, which now overshadows chemicals in importance .
oslo, norway - - march 26, 2007 - - algeta asa, the norwegian cancer therapeutics company, today announced the successful closing of its initial public offering. the offering was more than two times oversubscribed and was priced in the upper half of the price range at nok 47 per share. gross proceeds (before over - allotment) amount to nok 250 million ($ 41 million). the offering took place in conjunction with algeta’s listing on the oslo stock exchange. algeta shares are expected to begin trading on the oslo stock exchange (ticker: algeta) on tuesday, 27 march 2007 .
algeta won the scrip award for biotech of the year in 2010 on the basis of it signing one of the largest partnering deals of the year in oncology with bayer. algeta also won breakthrough of the year at the european mediscience awards in 2012 following its successful phase 3 results and progress towards launch .
norwegian biotech algeta asa has licensed bayer schering pharma worldwide development and marketing rights to its phase iii cancer - targeting radiopharmaceutical alpharadin (radium 223 chloride) .
xofigo project name: radium - 223 chloride disease: prostate cancer peak sales estimate: $ 1. 5 billion approved: may 15 companies: bayer and algeta
in september 2009, algeta signed an agreement with bayer for the development and commercialization of radium - 223. under the terms of the agreement, bayer will develop, apply for health authority approvals worldwide and commercialize radium - 223 globally. algeta us, llc will co - promote radium - 223 with bayer in the us .
bayer’s sweetened bid at 362 norwegian crowns per share represents a 37 percent premium to algeta’s closing price on november 25, the day before its initial offer became public .
advent invested in the series a in 2005. algeta listed on the oslo stock exchange in march 2007 and was acquired by bayer in 2014 for $ 2. 9b .
she points, for example, to the major investment fund healthcap, which is also a member of the cluster and has posted millions in both nordic nanovector and algeta .
from the left: andrew kay, ceo of algeta, trond giske, the norwegian trade and industry minister and eva dugstad, president of ife. photographer: ina wesenberg
the alpharadin deal with bayer totals up to $ 800 million (eur560m) to algeta. this is made up of an upfront payment of $ 61 million (eur42. 5m) plus further cash payments based upon the achievement of certain development, production and commercialization milestones. algeta will be responsible for manufacturing and supply of the commercial product .
still, after bayer put down a 14. 8 billion kroner ($ 2. 4 billion) bid for oncology partner algeta, some analysts immediately predicted an uptick in price. algeta discovered xofigo, the recently approved radiotherapy for prostate cancer that has spread to the bone - - and bayer has pegged it as a $ 1 billion - plus drug. plus, algeta is working on more radiation - based cancer technologies, including an armed - antibody approach, and bayer wants to beef up its offerings in oncology .
algeta said on thursday that bayer, through a subsidiary, intends to launch a cash tender offer to acquire the outstanding stock of the company for 362 norwegian kroner, or about $ 59. 13, a share. the offer is a 37 percent premium on algeta’s closing price on nov. 25, the day before the preliminary offer was announced .
the board of directors of algeta has unanimously decided to recommend acceptance of the offer to its shareholders. in addition, bayer has obtained pre - acceptances for approximately 14% of the shares in algeta, including pre - acceptances from all members of algeta’s board of directors as well as from algeta’s largest shareholder, healthcap iv. bayer intends to make the offer through a subsidiary of bayer nordic se once the offer document has been cleared by the oslo stock exchange. the successful completion of the transaction is subject to certain conditions, including a minimum acceptance level of 90% of the share capital and approval by the relevant antitrust authorities. bayer expects to close the transaction during the first quarter of 2014 .
the statement reinforces the view that bayer views the algeta acquisition as a platform rather than a product purchase, with additional radiopharmaceuticals in its pipeline including a programme in breast cancer .
‘ife has been an important partner to algeta throughout the clinical development of radium 223, and it has been instrumental in helping us build a commercial production facility for the global supply of xofigo. we are all extremely grateful for the expertise, dedication and support that ife has provided to algeta on this journey and look forward to continuing our productive partnership. ’
algeta asa is a norwegian therapeutics company built on world - leading expertise in nuclear medicine and oncology and dedicated to the development of novel anticancer therapeutics based on alpha particle emitting radionuclides .
having worked with bayer since 2009, the board of directors is convinced of bayer' s commitment to establishing xofigo (radium ra 223 dichloride) globally, and maximizing its blockbuster potential ,
noted algeta chairman stein holst annexstad .
we are also pleased that bayer intends to further invest in the potential of algeta' s targeted thorium conjugate research platform .
algeta received a preliminary offer for 336 kroner a share, the oslo - based drugmaker said in a statement on tuesday, following a report on the approach by german newspaper frankfurter rundschau. the proposal values algeta at 27% more than monday’s closing price of 264. 6 kroner. the shares rose to 345. 20 kroner, suggesting investors expect a higher bid .
upfronts, milestones and royalty payments according to the agreement between bayer and algeta will be in eur. usd amounts provided in this release have been translated at 1 euro: usd1. 43
bayer’s shares were up 1 percent, while algeta’s rose 1. 5 percent by 5: 21 a. m. et in line with the stoxx europe 600 health care index. sxdp .
bayer acquired the drug through an $ 800 million deal with norway' s algeta in 2009, and the german pharma magnate is now hitching its oncology hopes to its partner' s platform technology, paying $ 2. 9 billion to buy out algeta last month. the deal gives bayer full control of xofigo and its blockbuster potential and includes a promising pipeline of similarly targeted therapies .
algeta was valued at nok 775m ($ 125m) at ipo in early 2007 – it was acquired by bayer for nok 17. 6bn ($ 2. 9bn) in march 2014 .
algeta had the biggest gain since 2011, rising 30% to close at a record 345. 20 kroner in oslo. bayer fell 0. 3% to close at €95. 79 .
algeta' s lead product candidate, alpharadin, addresses a major market opportunity in the field of oncology. bone metastases are a devastating consequence of the progression of certain cancers and current treatments are largely ineffective. healthcap is very excited to be supporting the algeta team in their efforts to develop new therapeutics that target this important unmet medical need ,
said per samuelsson, partner at healthcap .
for further information, please contact: dr. thomas ramdahl ceo algeta asa + 47 23 00 79 90 mark swallow phd / helena podd citigate dewe rogerson + 44 (0) 207 638 9571
for more: special reports: the top 10 pharma companies by 2013 revenue - bayer healthcare with big 5, bayer aims for 8% annual pharma growth through 2016 new drugs in hand, bayer' s pharma sales leap ahead with a sweetened $ 2. 9b bid, bayer nabs its xofigo partner, algeta bayer bids $ 2. 4b for xofigo partner algeta in drive for cancer growth
algeta signed an agreement with bayer for the development and commercialisation of xofigo in september 2009. under the terms of the agreement, bayer will develop, apply for approvals worldwide and market xofigo globally .
by harnessing the unique characteristics of alpha emitters, such as high potency and short range, algeta is developing new therapeutic candidates and technologies targeting metastatic and disseminated tumors and promising unrivalled potency without unacceptable toxicities .
in december, bayer won backing from the target’s board for an increased $ 2. 9 billion offer for the norwegian company, which is contingent on bayer being tendered 90 percent of algeta’s share capital .
john berriman, chairman of the board of algeta, said, “we are delighted to have successfully closed this offering, and very pleased to add so many international institutional specialist investors to our shareholder base. ”
algeta, a norwegian developer of treatments for cancer, has officially opened a commercial production facility for xofigo (radium ra 223 dichloride) at the institute for energy technology (ife) in kjeller, norway .
if you believe consensus, they should pay way more than that, van renterghem said. they should probably pay $ 3 billion. he raised his rating on algeta shares on tuesday to neutral from sell .
algeta asa, headquartered in oslo, norway, is a private therapeutics company dedicated to the development of novel anticancer therapeutics based on alpha particle emitting radionuclides. the company was founded in 1997 as anticancer therapeutic inventions .
thomas ramdahl, president and ceo of algeta, said: “with the recently announced phase ii data demonstrating a survival benefit for our lead product, alpharadin, algeta is at an exciting stage in its development. the funds raised from this offering will now allow us to accelerate the clinical development of alpharadin and advance our pipeline of preclinical product candidates towards the clinic. i look forward with confidence to continued progress in the future .
, a spokesman for bayer, confirmed that the leverkusen, germany - based company made a preliminary offer and declined to comment further. algeta said there’s no guarantee bayer’s proposal will result in a deal, and spokesman
oslo, norway - - (marketwired - may 30, 2013) - algeta asa (ose: algeta) announces that xofigo® (radium ra 223 dichloride) injection, recently approved by the us food and drug administration (fda) for the treatment of patients with castration - resistant prostate cancer, symptomatic bone metastases and no known visceral metastatic disease, has been launched in the united states and the first sale has been made .
the buzz over bayer' s final price revolved entirely around xofigo, which is to be expected. but biotech insiders are likely to speculate that bayer also sees value in the work its collaborator was doing on new therapies. algeta was zeroing in on combining thorium - 227 with cancer - targeting antibodies for a next - gen pipeline. and algeta' s board clearly expected a premium for the experimental work as well as xofigo .
in 2007 algeta completed its ipo on the oslo exchange. we took a small position at that time and engaged in active dialogue with the company. by 2008, market conditions made it difficult to raise the additional money needed to start the pivotal phase 3 trial. in 2009, we led a $ 37m financing in algeta having set the condition that the funding had to raise enough capital to complete the trials without a pharmaceutical partner .
bayer is offering algeta shareholders a smaller premium than other biotechnology companies have gotten over the past five years. acquirers paid an average 56% premium in deals larger than $ 100 million, according to data compiled by bloomberg .
bayer and algeta are already partners in selling the prostate cancer drug xofigo, the use of which was approved by the united states food and drug administration in may. the companies have worked together on developing the drug since 2009 .
gross proceeds from algeta’s initial public offering, subject to completion, will amount to between nok 200 million and nok 250 million and will enable algeta to initiate a phase iii clinical program for alpharadin™, the company’s lead product. alpharadin™ has, in a double - blind placebo - controlled phase ii clinical trial in patients with late stage prostate cancer, shown statistically significant survival benefit and significant results on various disease progression markers as well as a benign side effect profile .
bayer bid for algeta late last year to gain outright control over novel prostate cancer drug xofigo which the two have developed jointly since 2009 and started selling in the united states in 2013. the drug also won european approval in november .
bayer has reached an agreement with algeta’s board of directors to make a recommended voluntary public takeover offer to algeta’s shareholders, and is offering them nok 362 per share in cash. the offer implies an equity value of nok 17. 6 bn (eur 2. 1 bn) and an enterprise value of nok 16. 2 bn (eur 1. 9 bn). the offer price represents a premium of 37% over the closing price on november 25, 2013, the day before algeta confirmed that it had received a preliminary, non - binding acquisition proposal from bayer, or a premium of 48% over the unaffected three - month volume - weighted average share price on november 25, 2013 .
radiopharmaceuticals specialist algeta asa, of oslo, norway, successfully closed its initial public offering, raising nok 250 million. the offering was more than two times oversubscribed and was in the upper half of the price range at nok 47 per share .
algeta' s lead product candidate, alpharadin, is a novel bone - seeking experimental radiopharmaceutical based on the alpha particle emitter radium - 223. alpharadin is currently in phase ii clinical trials as a potential new treatment for bone metastases from prostate cancer .
algeta developed xofigo® (radium - 223 dichloride), a first - in - class, targeted alpha - pharmaceutical that was approved by the us fda and european ema for treatment of patients with symptomatic bone metastases secondary to castration - resistant prostate cancer .
algeta is also developing other technologies for delivering alpha emitters including microparticles, liposomes and its receptor targeting technology, which is designed to enhance the potency of therapeutic antibodies and other tumor - targeting molecules by linking them to the alpha particle emitter thorium - 227 .
bayer and algeta offer patient assistance through xofigo access servicessm which will assist with obtaining coverage and patient support of xofigo. patients and providers may contact the program at 1 - 855 - 6xofigo (1 - 855 - 696 - 3446) for additional information .
norway' s algeta ended up negotiating a sales price that was 37% over the share price it had rung up just ahead of the bid - - in line with the premiums that have been charged for biotech assets over the course of the year .
according to the senior advisor, international focus on the academic results created in norway has increased. she points to the german life science giant bayer ag’s takeover of norwegian biotech algeta in 2014 in a deal worth nok 17. 6 billion as proof of that .
she refers to øyvind s. bruland and roy h. larsen, who worked on the early development of what would become xofigo and founded algeta in 1997. since then, they have also helped found the company nordic nanovector in 2009 and oncoinvent the following year .
oncoinvent closed a funding round of its own recently, securing nok 210 million, and in a general sense, the funding environment in norway has improved immensely in recent years – not least due to the sale of algeta and a general recovery of the stock market .
the commercial production of xofigo is underway, and first doses are expected to be ready for patient treatment within a few weeks. bayer has worldwide exclusive marketing rights for xofigo. algeta us, llc and bayer healthcare will co - promote the product in the us .
news of bayer' s interest in algeta - which developed recently - approved prostate cancer therapy xofigo (radium ra 223 dichloride) - first emerged in november when the offer was reported be nok 336 per share, valuing the company at around $ 2. 4bn .
aside from the promising cancer medicine, algeta also had some 180 full - time employees. a number of those workers went with bayer to germany, while a portion of them stayed in the life science environment around oslo and some have moved on to other biotech companies .
a conference call for investors, analysts and the press, and hosted by algeta' s senior management team, will take place tomorrow at 08: 00 cet. to participate in the conference call, please dial the appropriate number below five minutes prior to the call :
the german healthcare giant, through aviator acquisition, a wholly - owned subsidiary of bayer nordic, has offered nok362 (€43; us $ 59) per algeta share, in cash, valuing the company at approximately nok17. 6bn (us $ 2. 9bn) .
abingworth joined the board in 2009. two us experts were then brought on to the board to oversee clinical and regulatory issues. investor relations advisors were engaged and banking introductions made to help internationalise awareness of the stock. in the first year after our investment the company signed an attractive deal with bayer where algeta retained rights to 50% of the us market. the trial was well run and stopped early because of signs of overwhelming efficacy. bayer eventually acquired algeta and the drug, xofigo, is now available to patients in the us and europe
' having worked with bayer since 2009, the board of directors is convinced of bayer’s commitment to establishing xofigo globally, and maximising its blockbuster potential. we are also pleased that bayer intends to further invest in the potential of algeta’s targeted thorium conjugate (ttc) research platform.'
oslo, norway, march 9, 2007 - algeta asa, the norwegian cancer therapeutics company, announced today that the prospectus prepared for the forthcoming ipo and listing on the oslo stock exchange has been approved by ose. the book - building and application period starts monday, 12 march 2007 .
, and buying algeta would mean it doesn’t need to share profits or pay royalties on the medicine. the german drugmaker will probably need to spend more than it’s offering now for its partner, guillaume van renterghem, a london - based analyst for ubs ag, said in a telephone interview .
algeta is the quintessential biotech success story and testament to the range of communications skills and expertise that the citigate team can deploy to cover every likely situation during a company’s life cycle. at each stage, the communications focus was on addressing different challenges and business risks. planning for failure was as important as planning for success. as it was, the team was able to communicate algeta’s success more than its failings, including a major partnering deal with bayer, successful phase 3 results, approval by the regulators in the us and europe, product launch and the company’s eventual acquisition by bayer .
‘the recent approval and launch of xofigo in the us are momentous achievements for algeta and put us firmly on the path to deliver on our vision of becoming a world - class oncology company bringing novel targeted medicines to cancer patients through our leadership in alpha particle - emitting pharmaceuticals, ’ said kay .
algeta had a very intriguing idea. treatment of bone metastases includes irradiation with external x - rays but this is of limited patient benefit. what if you could get the source of radiation inside the bone and kill tumours locally? radium 223 is a radioactive element that has chemical properties similar to calcium .
under the terms of the agreement, algeta has an option for up to 50% co - promotion with bayer in the united states under a profit - share arrangement. bayer will commercialize alpharadin globally and pay tiered double - digit royalties on net sales in markets where there is no co - promotion .
germany' s frankfurter rundschau initially broke the story, but it got the numbers wrong. in a statement, algeta confirmed an offer from bayer but said the bid was for 336 norwegian kroner per share, not 306 kroner, a 27% premium that would value the company at $ 2. 4 billion .
advent' s life sciences team has a first - class investment track record. recent investments include avila therapeutics, biocartis, cellnovo, respivert, thiakis, algeta and amsterdam molecular therapeutics in all of which the advent life sciences team led the formation of the company and / or participated in the first venture round .
bayer’s offer values algeta at about 29. 1 times earnings before interest, tax, depreciation and amortization, according to data compiled by bloomberg. acquirers of biotechnology companies paid an average of 24. 4 times profit in deals of $ 100 million or more in the past five years, according to the data. bloomberg
it took a half - billion - dollar sweetener, but bayer has closed the deal to buy its cancer drug partner algeta for $ 2. 9 billion in cash. the buyout leaves bayer with full control of the prostate cancer drug xofigo along with a pipeline that includes a potential next - gen successor to the targeted radioactive therapy .
andrew kay, algeta’s president & ceo, said: “we are delighted that the fda has taken the decision to approve xofigo so quickly. we are extremely pleased to be able to make this alpha particle - emitting pharmaceutical available to us patients with castration - resistant prostate cancer and symptomatic bone metastases. we will now finalize our launch preparations for xofigo in the us, with the intention of launching it, with bayer, as soon as possible. this approval is a major milestone for algeta and puts us firmly on the path to deliver on our vision to be a world - class oncology company bringing novel targeted medicines to cancer patients through our leadership in alpha particle - emitting pharmaceuticals. ”
the official ribbon cutting ceremony was attended by andrew kay, algeta' s president and ceo, and senior management colleagues, who were joined by trond giske, the norwegian minister for trade and industry, eva dugstad, president of ife and andreas fibig, president and chairman of the board of management at bayer healthcare pharmaceuticals, and other guests .
earlier this year, bayer happily heralded the fda' s approval of xofigo for castration - resistant prostate cancer as an important milestone for its steadily growing portfolio of cancer therapies. and now the german pharma company has set its sights on bagging algeta - - the norwegian company that discovered the therapy and subsequently partnered with bayer - - for $ 2. 4 billion .
concurrent with the financing, per samuelsson, partner, healthcap; patrick lee, general partner, advent venture partners; and dr. kent gossett, principal, sr one; will join stein annexstad, managing director, representing norgesinvestor; dr. jens petter falck, partner, selvaag venture capital; and john berriman, chairman; on algeta' s board of directors .
now, some analysts say the german pharma may have bid too high, but bayer may well find that algeta was worth the price. the company is working to beef up its oncology presence, and its other cancer partner - - onyx pharmaceuticals, which co - markets stivarga and the older nexavar - - was snapped up by amgen ($ amgn) last summer .
algeta' s president & ceo, andrew kay, commented :
we are delighted to announce the first sale of xofigo, following its approval by the fda for the treatment of patients with castration - resistant prostate cancer, symptomatic bone metastases and no known visceral metastatic disease. for these patients, we anticipate that xofigo will be an important and welcome new addition to the treatment paradigm .
the therapy is used for the treatment of men with castration - resistant prostate cancer (crpc) who also have symptomatic bone metastases and no known visceral metastases, and racked up third quarter sales of around €12m ($ 17m) in the third quarter. algeta chief executive andrew kay said last month the drug had shown
excellent momentum
thanks to rapid endorsement by the us national cancer network .
alpha emitters have not until recently been a significant therapeutic modality. however, discoveries in radiochemistry and recent advances in the understanding of tumor and radiation biology led algeta' s scientific founders - - roy larsen and oyvind bruland - - to conceive how the unique features of alpha emitters, such as high potency and short range, could be exploited to create new therapeutic candidates promising unrivalled potency without unacceptable toxicities .
not only has advent secured exits, its investee companies algeta a / s, eusa pharma inc. and uniqure nv have taken products through to approval, parekh noted, saying that underlines the importance of ensuring companies are adequately funded .
we are a big investor and we syndicate. early stage does not mean low cost; you' ve got to give companies enough capital ,
he said .
algeta may agree. in a statement, the norwegian company said discussions are at an early stage, and there is
no certainty
that a deal will materialize .
i think this company has great prospects on a standalone basis ,
cfo oystein soug told reuters. he wouldn' t rule out a bidding war ,
but of course that is not my call ,
he said .
this press release is not for distribution to united states, canada or japan news services or for dissemination in the same countries or elsewhere where such dissemination is not appropriate. this news release is not and under no circumstances is to be construed as a solicitation, offer, or recommendation, to buy or sell securities issued by algeta. this press release may not be relied upon by any person to whom it was not intended to be provided. these materials are not an offer of securities for sale in the united states, canada or japan. securities may not be offered or sold in the united states absent registration or an exemption from registration under the u. s. securities act of 1933, as amended. algeta asa has not registered, and does not intend to register, any portion of the offering in the united states
this press release is not for distribution to united states, canada or japan news services or for dissemination in the same countries or elsewhere where such dissemination is not appropriate. this news release is not and under no circumstances is to be construed as a solicitation, offer, or recommendation, to buy or sell securities issued by algeta. this press release may not be relied upon by any person to whom it was not intended to be provided. these materials are not an offer of securities for sale in the united states, canada or japan. securities may not be offered or sold in the united states absent registration or an exemption from registration under the u. s. securities act of 1933, as amended. algeta asa has not registered, and does not intend to register, any portion of the offering in the united states .
john berriman, chairman of the board of algeta, said: “we are delighted to have successfully closed this offering, and very pleased to add so many international institutional specialist investors to our shareholder base. i would like to thank all those involved in the ipo process for their hard work, but special thanks are due to thomas ramdahl and his team for their unstinting efforts since the very early days of the company. ”
bayer plans to strengthen its oncology portfolio with the acquisition of norwegian pharmaceutical company algeta, with which it has already collaborated to develop and commercialize the cancer drug xofigo. the deal, valued at $ 2. 9 billion, will give bayer full control over xofigo .
we are absolutely convinced of the potential of this drug and the underlying technology to provide patients with innovative treatment options ,
commented bayer ceo marijn dekkers .
first up, algeta is developing thorium - 227, technology that would allow it to link alpha radiation particles like xofigo to monoclonal antibodies, promising to further improve targeting for future cancer treatments. meanwhile, bayer is spending big to study xofigo in combination with other prostate cancer drugs, including johnson & johnson' s ($ jnj) fast - growing pill zytiga, looking to further expand the market for its banner injection .
algeta' s lead product candidate, alpharadin, has completed one phase ii trial and is currently in two further phase ii clinical trials as a potential new treatment of hormone refractory prostate cancer. based on results to date, it is expected to progress to clinical phase iii trials. alpharadin is a novel bone - seeking radiopharmaceutical based on the alpha particle emitter radium - 223 and may potentially target skeletal metastases from multiple cancer types .
this news release contains certain forward - looking statements that are based on uncertainty, as they relate to events and depend on circumstances that will occur in the future and which, by their nature, may have an impact on results of operations and the financial condition of algeta. such forward - looking statements reflect our current views and are based on the information currently available to algeta. algeta cannot give any assurance as to whether such forward looking statements will prove to be correct. these forward looking statements include statements regarding our anticipated co - promotion of xofigo in the us. there are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward - looking statements. these factors include, among other things, risks or uncertainties associated with the ability to identify and hire a sufficient number of qualified employees in the us, growth management, general economic and business conditions and the pricing environment, the impact of competition, the ability to successfully commercialize xofigo, the risk that costs associated with the copromotion of xofigo may be greater than anticipated, manufacturing capacity, the risk of non - approval of patents not yet granted, risks in obtaining additional regulatory approvals for radium - 223 and the other risks and uncertainties described in our annual report .
this news release contains certain forward - looking statements that are based on uncertainty, as they relate to events and depend on circumstances that will occur in the future and which, by their nature, may have an impact on results of operations and the financial condition of algeta. such forward - looking statements reflect our current views and are based on the information currently available to algeta. algeta cannot give any assurance as to whether such forward looking statements will prove to be correct. these forward looking statements include statements regarding our co - promotion of xofigo in the us. there are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward - looking statements. these factors include, among other things, risks or uncertainties associated with the ability to identify and hire a sufficient number of qualified employees in the us, growth management, general economic and business conditions and the pricing environment, the impact of competition, the ability to successfully commercialize xofigo, the risk that costs associated with the co - promotion of xofigo may be greater than anticipated, manufacturing capacity, the risk of non - approval of patents not yet granted, risks in obtaining additional regulatory approvals for radium 223 and the other risks and uncertainties described in our annual report .
andrew kay, ceo of algeta, said ,
this agreement is the culmination of an extensive process to establish and deliver the best possible commercialization strategy for alpharadin. in bayer we have selected a world - class oncology company with a proven global track record of launching major cancer products. we are very excited about working with the bayer team to deliver this novel and potentially first choice treatment for cancer patients with bone metastases .
under its deal with bayer, algeta co - promotes xofigo in the u. s. and gets 50% of the profits in - country; outside the u. s. , it' s eligible for royalties and milestone payments on bayer' s sales. bayer is backing additional clinical trials testing xofigo in combination with johnson & johnson' s ($ jnj) prostate - cancer pill zytiga and with various chemo drugs for other cancers .
after bayer bid $ 2. 4 billion to buy algeta, some analysts predicted it would need to put down more to snag the oncology company. after all, the norwegian drugmaker discovered xofigo, one of bayer' s shining growth prospects, and it has some other radiation - based cancer technologies - - including an armed antibody approach - - in the works. so bayer ponied up, chipping in another $ 500 million to seal the deal .
once word of bayer' s initial $ 2. 4 billion offer became public weeks ago, analysts expected that bayer would have to up its offer to the $ 3 billion zone if it expected to complete the acquisition. but a few have fretted that the company is paying a bit too much in the deal. algeta had retained co - promotion rights for the drug in the u. s. and had been due royalties on sales in europe .
algeta was also convinced there' s a second act for xofigo' s pinpoint alpha - radiation approach to treat cancer. the company has been zeroing in on combining thorium - 227 with cancer - targeting antibodies for a next - gen treatment, offering the potential for a subsequent step - up in its marketing activities. and while a 27% premium would be considered rather thin this year, with stock prices and valuations up across the board, bayer can afford a bump in the price .
a tie - up would make good sense for bayer, which has been steadily building up its oncology work. the cancer division at bayer includes a partnership on nexavar and the second - generation therapy stivarga, now managed by amgen ($ amgn) following the onyx buyout. when algeta signed its $ 800 million collaboration deal with bayer 4 years ago, the savvy norwegian company kept its hands on co - promotion rights in the u. s. while carving out a royalty stream from bayer .
abg sundal collier norge and dnb nor markets acted as joint lead managers and terra securities has acted as co - lead manager. the issue comprises 5, 319, 148 new shares, and a further 797, 852 shares have been allocated under the manager' s over - allotment option. the issued share capital of algeta asa after the equity offering (before over - allotment) will be nok 8, 231, 654, equalling 16, 463, 308 shares of nok 0. 50 par value .
kemal malik, head of global development and member of the bayer healthcare executive committee said ,
we recognize the tremendous potential of algeta' s alpharadin as a possible treatment for bone metastases in cancer patients - a serious, life - threatening condition. the data we have seen suggest that alpharadin represents a highly targeted treatment option with convenient handling and manageable side effects. bayer is committed to its global oncology franchise and has made significant progress in building a comprehensive pipeline of promising compounds that may provide innovative therapies to cancer patients in need of treatment .
oslo, norway - - (market wire) - - september 2, 2005 - - algeta asa, a therapeutics company dedicated to the development of novel anticancer agents based on alpha particle emitting radionuclides, announced today the closing of a series a round of financing totaling nok 185 million (euro 23 million / us $ 29 million). the funds raised will support the continued development of the company' s lead product candidate, alpharadin, through its ongoing phase ii clinical trials and into pivotal phase iii trials as a potential new treatment for bone metastases arising from primary prostate cancer .
algeta' s lead alpha - pharmaceutical candidate, alpharadin (based on radium - 223), has blockbuster potential for treating bone metastases arising from multiple major cancer types, owing to its bone - targeting nature, potent efficacy (therapeutic and palliative) and benign, placebo - like safety profile. development of alpharadin is most advanced targeting bone metastases resulting from hormone - refractory prostate cancer (hrpc), and it entered an international phase iii clinical trial (alsympca) in mid - 2008 based on compelling clinical results from a comprehensive phase ii program. this trial is currently open for recruitment .
both of these drugs, however, are part of a partnership with onyx pharmaceuticals ($ onxx), which amgen ($ amgn) snapped up in october. when amgen first moved in with its onyx bid, bayer was seen as a rival buyer. that obviously didn' t come to fruition. algeta is more of a bite - sized deal, and thus would be easier to digest. and it falls within dekkers' parameters for bolt - on acquisitions - - even if the price goes up to $ 3 billion. whether dekkers also believes bayer has wiggle room on price remains to be seen .
alpharadin is algeta' s lead cancer therapeutic. it is the first in a new class of alpha - emitting pharmaceuticals (' alpha - pharmaceutical') and is based on radium - 223. alpharadin is in a global phase iii clinical trial (alsympca) designed to confirm its efficacy and safety as a targeted treatment for bone metastases in patients with hrpc. alpharadin is administered as a simple injection and has a unique mode of action whereby it targets bone metastases specifically and exerts a highly localized effect on tumor cells while minimizing damage to normal surrounding tissues. in phase ii studies, alpharadin demonstrated strong evidence that it can prolong patient survival, improve quality of life and offer a benign safety profile .
but bayer' s embrace of algeta' s cutting - edge approach to oncology is a sign that the old pharma isn' t married to tradition, and, with ex - partner onyx pharmaceuticals taking a roughly $ 10. 4 billion deal to join amgen ($ amgn), bayer' s timing couldn' t be better. after promising to hone his company' s oncology focus, bayer ceo marijn dekkers has come through with a blockbuster approval and a multibillion - dollar deal. now we' ll see whether bayer' s combination of bright minds and deep pockets can get it into the rare cancer company of roche ($ rhhby), novartis ($ nvs) and amgen. - - damian garde (email | twitter )
this news release contains forward - looking statements and forecasts based on uncertainty, since they relate to events and depend on circumstances that will occur in the future and which, by their nature, will have an impact on results of operations and the financial condition of algeta. there are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward - looking statements. theses factors include, among other things, risks associated with technological development, the risk that research & development will not yield new products that achieve commercial success, the impact of competition, the ability to close viable and profitable business deals, the risk of non - approval of patents not yet granted and difficulties of obtaining relevant governmental approvals for new products .
advent life sciences closed its first dedicated fund at $ 158 million in 2011. the final advent diversified fund, which closed in 2006, so far has produced three new therapeutic products and two medical device products either brought to market by the portfolio companies themselves or their acquirers. some of its big exits or milestones include the $ 350 million acquisition of avila therapeutics by celgene in 2012; jazz pharmaceuticals’ $ 650 million purchase of eusa pharma in 2012; bayer healthcare’s $ 2. 9 billion buyout of norwegian cancer drug maker algeta, which closed this year; and the march 2014 ipo of versartis, of which advent owned 9. 3 percent after the market debut. shares opened at $ 21 apiece and rose quickly at first, but have come back down below that initial mark, ending monday at $ 19. 49.
algeta asa ( algeta : no ) was founded in 1997 by roy h. larsen and øyvind s. bruland in oslo , norway as a private biotechnology and pharmaceutical company . the company ’s research and development focus lies in the field of alpha-particle emitting radiopharmaceuticals . the lead product of the company , xofigo is the first marketed alpha-particle emitting radiopharmaceutics for cancer treatment . 
algeta asa (algeta: no) was founded in 1997 by roy h. larsen and øyvind s. bruland in oslo, norway as a private biotechnology and pharmaceutical company. the company ’s research and development focus lies in the field of alpha-particle emitting radiopharmaceuticals. the lead product of the company, xofigo is the first marketed alpha-particle emitting radiopharmaceutics for cancer treatment.
algeta asa (algeta: no) was founded in 1997 by roy h. larsen and øyvind s. bruland in oslo, norway as a private biotechnology and pharmaceutical company. the company ’s research and development focus lies in the field of alpha-particle emitting radiopharmaceuticals. the lead product of the company, xofigo is the first marketed alpha-particle emitting radiopharmaceutics for cancer treatment.