Bayer to acquire Norwegian firm Algeta
Increases offer to NOK362 per share
Bayer has won the backing of the Board of Directors of Algeta to support its bid to acquire the Norwegian developer of cancer drugs.
The German healthcare giant, through Aviator Acquisition, a wholly-owned subsidiary of Bayer Nordic, has offered NOK362 (€43; US$59) per Algeta share, in cash, valuing the company at approximately NOK17.6bn (US$2.9bn).
In late November, Bayer offered NOK336 per Algeta share.
The deal will give Bayer control over cancer treatment Xofigo, a drug that the two firms have developed jointly since 2009 and started selling in the US this year following approval for the treatment of patients with castration-resistant prostate cancer, symptomatic bone metastases and no known visceral metastatic disease.
'We are absolutely convinced of the potential of this drug and the underlying technology to provide patients with innovative treatment options,' said Bayer CEO Dr Marijn Dekkers.
Stein Holst Annexstad, Chairman of the Board of Directors of Algeta, added: 'We believe the offer recognises the strategic value of Algeta and delivers a considerable cash premium to our shareholders.
'Having worked with Bayer since 2009, the Board of Directors is convinced of Bayer’s commitment to establishing Xofigo globally, and maximising its blockbuster potential. We are also pleased that Bayer intends to further invest in the potential of Algeta’s Targeted Thorium Conjugate (TTC) research platform.'
Subject to customary conditions, Bayer expects to close the transaction during the first quarter of 2014.
