First sales of Xofigo triggers 50 million-euro milestone payment to Algeta from Bayer

Norway’s Algeta (OSE: ALGETA) announced today (May 30) that Xofigo (radium Ra 223 dichloride) injection has been launched in the USA by partner Bayer (BAYN: DE) and the first sale of the drug has taken place, resulting in a payment to the company.

Xofigo was recently approved by the US Food and Drug Administration for the treatment of patients with castration-resistant prostate cancer, symptomatic bone metastases and no known visceral metastatic disease(The Pharma Letter May 16) FDA). Xofigo is the second prostate cancer drug cleared by the FDA in the past year. Last summer, the FDA approved Xtandi (Astellas Pharma/Medivation's enzalutamide) to treat men with metastatic castration-resistant prostate cancer that has spread or recurred, even with medical or surgical therapy to minimize testosterone (TPL September 3, 2012).

The first commercial sale of Xofigo triggers a 50 million-euro ($64.5 million) milestone payment to Algeta from Bayer under the terms of the 2009 development and licensing agreement. Bayer has worldwide exclusive marketing rights for Xofigo worth a potential $800 million to the Norwegian firm. Algeta US and Bayer Healthcare are co-promoting the product in the USA.