Deal surprises analysts
Oslo – Norway’s Algeta ASA surprised analysts with a EUR560m licensing pact for the company’s lead drug – an experimental radiotherapy that targets cancerous bone cells. Licensing partner Bayer Schering Pharma will pay US$61m in an upfront fee for Alpharadin, a prospective blockbuster that uses alpha rays to eliminate cancer cells. The two companies will jointly develop the medicine, with German pharma major Bayer shouldering the majority of the development costs. After the news broke, Algeta shares rose about 71% to NOK69.