Bayer in Bid to Acquire Norwegian Cancer Drug Firm

Bayer in Bid to Acquire Norwegian Cancer Drug Firm

LONDON – The Norwegian cancer drug maker Algeta said on Tuesday that it had received a preliminary offer to be acquired by the German drug giant Bayer for about $ 2.4 billion.

In a statement, Algeta said Bayer had offered to pay 336 Norwegian kroner, or about $ 55.03, a share and the “discussions are at an early stage.” The offer is 27 percent above Algeta’s closing price of 264.60 kroner on Monday.

“There is no certainty that this preliminary acquisition proposal will lead to a transaction,” the company said.

The companies are already partners in selling the prostate cancer drug Xofigo, which was approved for use by the United States Food and Drug Administration in May. The companies have worked together on developing the drug since 2009.

To combat the rising costs of developing new drugs, larger pharmaceutical firms are increasingly entering collaboration agreements or acquiring smaller companies shortly after their drugs are approved for use on the market.

If a deal with Algeta is reached, it would be one of a series of small to midsize acquisitions Bayer has made in the last year to expand its business.

In June, Bayer acquired Conceptus, the American maker of the Essure birth control product, for $ 1.1 billion. In July, it completed its acquisition of Steigerwald Arzneimittelwerk, a family-owned company that specializes in pharmacy-only herbal medicines.

Shares of Algeta were up 30.3 percent, at 344.80 kroner, in morning trading on Tuesday.



Leave a Reply

Your email address will not be published.