Bayer launches 1.9-bn-euro bid for Norway's Algeta

German pharmaceuticals giant Bayer said Thursday it has launched a 1.9-billion-euro ($2.6-billion) bid to buy Norwegian cancer treatment specialist Algeta.

"The Bayer group plans to further strengthen its oncology portfolio with the acquisition of Norwegian pharmaceutical company Algeta," the German group said in a statement.

"Bayer has reached an agreement with Algeta's board of directors to make a recommended voluntary public takeover offer to Algeta's shareholders, and is offering them 362 kronor per share in cash," the statement said.

The offer implied an equity value of 17.6 billion kronor or 2.1 billion euros and an enterprise value of 16.2 billion kronor or 1.9 billion euros.

The offer price represented a premium of 37 percent over the closing price on November 25, the day before Algeta confirmed that it had received a preliminary, non-binding acquisition proposal from Bayer.

Bayer said Algeta's board of directors had "unanimously decided to recommend acceptance of the offer to its shareholders."

"We have already successfully collaborated with Algeta to develop and commercialize the cancer drug Xofigo. The planned acquisition would give us full control over Xofigo. We are absolutely convinced of the potential of this drug," said Bayer chief executive Marijn Dekkers.

add to favorites email to friend print save as pdf

Related Stories

Bayer bids 1.8 bn euro for Norway's Algeta

Nov 26, 2013

German pharmaceutical group Bayer has made a bid for its Norwegian partner and competitor Algeta, specialised in cancer treatments, for 1.8 billion euro ($2.4 billion), the Nordic company said Tuesday.

Bayer says new products push profits higher in Q3

Oct 31, 2013

German chemicals and pharmaceuticals group Bayer, maker of Aspirin, said on Thursday that new pharmaceutical products and favourable agrochemical prices gave profits a fillip in the third quarter.

Bayer rules out increasing bid for Schiff Nutrition

Nov 20, 2012

German chemicals and pharmaceuticals giant Bayer withdrew from a battle to buy US-based Schiff Nutrition International on Tuesday, ruling out an increase to its bid against a rival counter offer.

Recommended for you

Medical charity warns India over patent rules

Jan 21, 2015

Doctors without Borders on Wednesday warned the Indian government not to bow to US pressure to amend patent regulations that allow millions access to affordable medicines, ahead of a visit by President Barack Obama.

Why are some generic drugs getting so expensive?

Jan 21, 2015

More than eight out of every 10 prescriptions dispensed in the US is generic. This growth is due to a large number of top-selling drugs going off patent over the past decade, as well as innovations in t ...

Supreme Court sides with Teva in drug dispute

Jan 20, 2015

The Supreme Court on Tuesday sided with Teva Pharmaceutical Industries Ltd. in the company's high-profile patent dispute with rival firms over the top-selling multiple sclerosis drug.

User comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.