Bayer HealthCare to acquire Algeta

Bayer HealthCare has agreed to purchase Norwegian pharmaceutical company Algeta in a deal worth around 2.1 billion euros (1.76 billion pounds).

The takeover will allow Bayer to further strengthen its oncology capabilities, thanks to Algeta's portfolio of novel alpha-pharmaceuticals, which are designed to target cancers using the unique benefits of alpha particle radiation, such as targeted delivery, potency and the lack of known resistance mechanisms.

Algeta and Bayer HealthCare have already successfully collaborated on the development of Xofigo, a new treatment for patients with castration-resistant prostate cancer, symptomatic bone metastases and no known visceral metastatic disease.

The takeover will give Bayer full control over this agent, which is one of its top five recently launched pharmaceutical products. It was granted a marketing authorisation from the European Commission last month.

Bayer chief executive officer Dr Marijn Dekkers said: "We are absolutely convinced of the potential of this drug and the underlying technology to provide patients with innovative treatment options."