Bayer buys Algeta radiopharmaceutical for $800M

Bayer Schering Pharma in Berlin, Germany, has entered into a global agreement with Algeta of Oslo, Norway, for the development and commercialization of Alpharadin, an alpha-emitting radium-223-based radiopharmaceutical.

Alpharadin is currently being evaluated in a global Phase III clinical trial to determine the efficacy and safety of the compound in 750 patients with symptomatic hormone-refractory prostate cancer (HRPC) and skeletal metastases. The ALSYMPCA (ALpharadin in SYmptoMatic Prostate CAncer) trial is a randomized, double-blind, placebo-controlled study with overall survival as the primary efficacy endpoint.

Including an upfront payment of  €42.5 million ($60.8 million U.S.), Algeta will receive cash payments on achievement of certain development, manufacturing and commercialization milestones, totaling up to €560 million ($800 million), and tiered double-digit royalties on net sales, according to Bayer.

Under the terms of the agreement, Bayer and Algeta will jointly develop Alpharadin, with Bayer contributing a substantial majority of the costs of future development. Bayer also said that it will commercialize Alpharadin globally and Algeta will have the option to co-promote Alpharadin in the United States under a profit sharing arrangement. Algeta will be responsible for manufacturing and supply of the commercial product.

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