A transformational year for Algeta ASA

"2009 was a transformational year for Algeta during which we successfully delivered a number of major milestones in progressing  towards our objective of creating a focused oncology company," said Andrew Kay, Algeta's President and CEO. The results for the last quarter and full year 2009 were presented in Oslo Friday.

"As a result of these achievements, Algeta now has sufficient financial resources to bring Alpharadin to market together with its world-class oncology partner, Bayer Schering Pharma. Importantly, we retain an option to co-promote Alpharadin in the US market. We plan to use this option to establish a US commercial organization, which is intended to be fully operational at the anticipated time of launch so that Algeta may share directly in Alpharadin's blockbuster sales potential," Andrew Kay added.

"Our cash position of NOK 514 million (USD 89 million) at year-end will also enable us to devote more resources to researching innovative technologies with the goal of developing new, targeted cancer product candidates based on our preclinical thorium alpha-pharmaceutical platform. We have now created a solid foundation from which to advance our strategy for creating shareholder value and we look forward to the year ahead with great enthusiasm."


Selected highlights for the full year 2009 include:

• In September 2009, Algeta entered into an USD 800 million agreement with Bayer, a major pharmaceutical company, for the development and global commercialization of Alpharadin to treat bone metastases in patients with prostate and other major cancers.
  
• Algeta received USD 61 million in upfront cash and may also receive additional milestones amounting to USD 161 million until first sales
  
• Algeta has the option to retain up to 50% of the US market and will also receive tiered double-digit royalties on worldwide sales outside the US
  
• Bayer will fund the substantial majority of clinical development work for Alpharadin
  
• USD 37 million (NOK 250 million) raised in a private placement in February, involving new and existing investors
  
• Commercial and clinical development capabilities strengthened in 2009 with two key appointments to the senior management.
  
• Algeta's share price increased by over 700% in 2009, closing at NOK 68.25 on the last trading day of 2009, making Algeta one of the best performing stocks in Europe for the year

 More information on Algeta's website