Biotech Values

[mcbio]

Bayer acquires Algeta (AKGZF) for $2.9B in cash:

finance.yBaahoo.com/news/bayer-set-acquire-cancer-specialist-101212730.html

Bayer's offer, which Algeta rejected one month ago, was $2.4B (#msg-94429823).

I’m calculating the buyout premium relative to the day before the original offer, which makes it 33%.

Algeta, a Norwegian company, developed the cancer radiotherapy, Xofigo and has co-marketing rights with Bayer in the US; in the rest of the world, Bayer pays Algeta a royalty on sales.

Xofigo has had a slow sales ramp since its May 2013 FDA approval, as detailed in #msg-91684833. It was cleared for marketing in the EU on 11/15/13.

Nearly $3B for a radiotherapy company??? Not exactly the sexiest of areas is it?