Algeta’s Bayer Buyout: Assessing A Rare Case of Partner Acquisition

Few biotechs are acquired by their partners -- only about a half dozen in each of the last two years, making the Bayer acquisition of Algeta an exception to the rule. Like other recent billion-dollar partner acquisitions, expectations for subsequent performance seem high.

Pharma companies use a variety of means to become familiar with emerging candidates and technologies, including partnership and corporate venture investment. Only very rarely do they go on to seal the deal by acquiring their own partner or investment, demonstrating a vast preference for acquiring other companies’ partners and investments ([A#2012900190]).

Algeta ASA proved an exception to the rule, when it disclosed on Dec. 19 that its board recommended shareholders...

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