Bayer in Bid to Acquire Norwegian Cancer Drug Firm

BY CHAD BRAY

LONDON – The Norwegian cancer drug maker Algeta said Tuesday that it has received a preliminary offer to be acquired by the German drug giant Bayer for about $2.4 billion.

In a statement, Algeta said that Bayer had offered to pay 336 Norwegian kroner, or about $55.03, a share and the “discussions are at an early stage.” The offer would represent a 27 percent premium over Monday’s closing price of 264.60 kroner.

“There is no certainty that this preliminary acquisition proposal will lead to a transaction or as to the terms of any such transaction,” the company said.

To combat the rising costs of developing new blockbuster drugs, larger pharmaceutical firms are increasingly entering collaboration agreements or acquiring smaller companies shortly after their drugs are approved for use on the market.The companies already are partners in selling the prostate cancer drug Xofigo, which was approved for use by the United States Food and Drug Administration in May. The companies have worked together on developing the drug since 2009.

If a deal with Algeta is reached, it would be one of a series of small- to medium-sized acquisitions that Bayer has made in the past year to grow its business.

In June, the company acquired Conceptus, the United States maker of the Essure birth control product, for $1.1 billion. In July, it completed its acquisition of Steigerwald Arzneimittelwerk GmbH, a family owned company that specializes in pharmacy-only herbal medicines.

Shares of Algeta were up 30.3 percent to 344.80 kroner in trading on Tuesday morning.