Bayer hooks Algeta’s groundbreaking cancer treatment Alpharadin in EUR560m deal
Oslo/Berlin – Shares of Norwegian drug company Algeta ASA have gone through the roof following the announcement that Bayer-Schering Pharma AG in Germany has secured the global commercialisation rights for Alpharadin for over EUR560m. Algeta’s radium-223-based compound, currently in Phase III clinical studies against bone metastases in hormone-refractory prostate cancer, is the world’s first targeted alpha-emitting drug. Alpharadin targets bone metastases specifically through intrinsic radium accumulation, exerting a highly localised effect on tumour cells.
Under the terms of the agreement, Algeta and Bayer will jointly develop Alpharadin, while Bayer will take over the larger share of development costs. In addition to its option of co-promoting 50% of the drug with Bayer on the US market, Algeta will receive an upfront payment of EUR42.5m plus further cash payments upon the achievement of specific development, production and commercialisation milestones. Bayer will commercialise Alpharadin globally and pay tiered double-digit royalties on net sales in markets where there is no co-promotion.
Bayer has announced that it will be testing the compound on other cancer indications, and will fully fund any additional late-stage trials