Algeta Signs $800m Global Agreement With Bayer

Algeta has entered into a global agreement with Bayer for the development and commercialisation of the former’s first-in-class alpha-pharmaceutical, Alpharadin.

Alpharadin is Algeta’s lead cancer therapeutic. It is the first in a new class of alpha-emitting pharmaceuticals (alpha-pharmaceutical) and is based on radium-223.

Alpharadin is currently being evaluated in a global phase III trial in men with hormone-refractory prostate cancer (HRPC) that has spread to the bone.

Under the terms of the agreement, Algeta has an option for up to 50% co-promotion with Bayer in the US under a profit-share arrangement.

Reportedly, Bayer will commercialise Alpharadin globally and pay tiered double-digit royalties on net sales in markets where there is no co-promotion.

The Alpharadin agreement with Bayer totals up to $800m (E560m) to Algeta. This is made up of an upfront payment of $61m (E42.5m) plus further cash payments based upon the achievement of certain development, production and commercialisation milestones.

Moreover, Algeta will be responsible for manufacturing and supply of the product. However, Bayer will also contribute a substantial majority of the costs of future development of Alpharadin as a treatment for bone metastases resulting from HRPC and from other cancer indications, and will fully fund any additional late-stage trials.

Andrew Kay, CEO of Algeta, said: This agreement is the culmination of an extensive process to establish and deliver the best possible commercialisation strategy for Alpharadin. We are very excited about working with the Bayer team to deliver this novel and potentially first choice treatment for cancer patients with bone metastases.