Replies to post #161161 on Biotech Values

[DewDiligence]

Some people appear to be uninterested in Xofigo because it’s “just” radiotherapy, which isn’t as sexy as immunotherapy. However, I’ll bet Xofigo will turn out to be a decent-selling drug.

[DewDiligence]

Bayer offers $2.4B in cash for Algeta (AKGZF), a 27% premium to yesterday’s close:

http://finance.yahoo.com/news/bayer-makes-2-4-billion-063418187.html

Algeta has not (yet) accepted the offer.

Algeta 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. (In the EU, Xofigo was approved by the CHMP in Sep 2013, but it is not formally cleared for marketing.)

[DewDiligence]

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

http://finance.yahoo.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.