) inked a global agreement with Orion Corporation for the
development and commercialization of ODM-201. ODM-201 is being
developed for the treatment of patients suffering from prostate
Bayer and Orion intend to start a phase III program on ODM-201
later in 2014. The study will evaluate the efficacy and safety of
ODM-201 in patients suffering from non-metastatic
castration-resistant prostate cancer (nm-CRPC) at high risk of
developing metastatic disease which can be identified because of
rapid increase in Prostate Specific Antigen (PSA).
We note that Bayer will be making an upfront payment of €50 million
for the agreement to Orion. Orion will also receive additional cash
payments from the German company upon achieving certain
development, tech transfer and commercialization milestones.
Moreover, Bayer will pay tiered double-digit royalties to Orion on
future global net sales of ODM-201 after approval.
As per the terms of the agreement, Bayer will be bearing the
majority of costs for the future development of the candidate.
ODM-201 will be commercialized globally by Bayer. However, Orion
has the option to co-promote the candidate in Europe and will also
be responsible for the manufacturing of the candidate.
We note that Bayer already has Nexavar, Stivarga and Xofigo in its
oncology portfolio. Last week, Bayer and partner
) announced that Nexavar was approved in the EU for the treatment
of patients suffering from progressive, locally advanced or
metastatic, differentiated (papillary/follicular/Hürthle cell)
thyroid carcinoma (DTC) that is refractory to radioactive iodine
Nexavar, a key oncology product at Bayer, is approved in over 100
countries around the globe. In the EU, the drug is approved for two
other indications - for the treatment of patients suffering from
hepatocellular carcinoma and suffering from advanced renal cell
carcinoma who have had unsuccessful interferon-alpha or
interleukin-2 based therapy. Bayer reported Nexavar sales of €771
million in 2013.
We are encouraged by Bayer's progress with its oncology portfolio.
However, companies like
) also have a strong presence in the global market.
Bayer, a large-cap company, currently carries a Zacks Rank #4
(Sell). Some better-ranked stocks include
), which carries a Zacks Rank #1 (Strong Buy).
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