Refile: UPDATE 3-Bayer bids $2.4 bln for Norwegian cancer drug partner Algeta
26/11/2013 18:57
* Bid at 27 pct premium to Algeta's last close * Bayer, Algeta jointly develop prostate cancer drug (Adds detail) OSLO, Nov 26 (Reuters) - German pharmaceutical group Bayer BAYGn.DE has offered to buy Norway's Algeta ALGETA.OL , its partner for a new prostrate cancer treatment, for $2.4 billion, a 27 percent premium to the stock's last close, Algeta said on Tuesday. If successful, the deal would give Bayer outright control over Xofigo, a drug the two have jointly developed since 2009 and started selling in the United States earlier this year. Though the drug only sold $17 million in the third quarter, it received marketing authorization in the European Union this year and analysts expect sales of the drug to take off over the next several years. Under the current deal between the firms, Bayer is responsible for developing the drug, applying for health authority approvals and commercializing. Algeta meanwhile receives royalties and milestones on sales. Algeta shares have soared this year on the early success of the drug and the offer price is 125 percent above the stock's level 12 months ago. One dose of Xofigo, used for castration-resistant prostate cancer, costs $11,500 dollars and one full treatment includes six doses. Prior to the bid, Algeta was trading at close to 20 times its expected 2015 earnings. ($1 = 6.1345 Norwegian krones) (Reporting by Balazs Koranyi; Editing by Mark Potter) ((Balazs.Koranyi@thomsonreuters.com)(+47 22 93 69 62)(Reuters Messaging: balazs.koranyi.thomsonreuters.com@reuters.net)) Keywords: BAYER ALGETA/