The HealthCare segment at
) offered a preliminary acquisition proposal to a Norway-based
oncology firm, Algeta ASA. The news was confirmed by the Board of
Directors at Algeta. Bayer has offered NOK 336 (approx. $55.11)
per share for Algeta.
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The companies are currently in discussion and only time will tell
whether the preliminary proposal will convert into a concrete
agreement. We remind investors that Bayer's association with
Algeta goes back to 2009 when the companies entered into a
partnership agreement to develop and commercialize their oncology
drug Xofigo (radium-223) in the global markets.
Bayer has been pretty active on acquisition and collaboration
this year, especially to boost its oncology portfolio. In Oct
2013, Bayer entered into a master collaboration agreement with
Sysmex Inostics, a diagnostic company, for the development of
companion diagnostics for targeted oncology therapies. As per the
agreement, Sysmex Inostics' innovative blood-based companion
diagnostic solutions will be used to develop Bayer's anti-cancer
Moreover, in Jun 2013, the company inked a collaboration
Seattle Genetics Inc.
) to gain worldwide rights to Seattle Genetics' auristatin-based
antibody-drug conjugate (ADC) technology along with antibodies to
several oncology targets. As per the terms of the deal, Bayer
will be responsible for the development, manufacturing and
commercialization of all products under the agreement.
We are encouraged by the company's efforts to boost its oncology
portfolio by acquisitions and collaborations. However, companies
) have a strong presence in the oncology market at this moment.
Bayer, a large-cap pharma stock, presently carries a Zacks Rank
#2 (Buy). Some other stocks worth considering include
). Actelion holds a Zacks Rank #1 (Strong Buy).