Algeta inks deal with Bayer

OSLO, Norway A Norwegian company that develops cancer drugs has signed a deal potentially worth nearly $1 billion to develop and commercialize a treatment for bone cancer.

Algeta announced last week an up to $800 million agreement with Bayer for Alpharadin, currently in late-stage clinical trials in men with hormone-refractory prostate cancer that has spread to the bone.

Under the agreement, Algeta will receive an upfront payment of $61 million, along with milestone payments related to development and sales, and have the option to co-promote Alpharadin with Bayer in the United States and share profits. Meanwhile, both companies will collaborate in developing the drug, with Bayer contributing a “substantial majority” of future development costs.

“This agreement is the culmination of an extensive process to establish and deliver the best possible commercialization strategy for Alpharadin,” Algeta CEO Andrew Kay said in a statement. “In Bayer, we have selected a world-class oncology company with a proven global track record of launching major cancer products.”