The Institute for Energy Technology (IFE) is collaborating with Algeta on the clinical- and commercial-scale manufacture and supply of the latter’s Phase III compound, Alpharadin (radium-223 chloride). This molecule is designed to target bone metastases and to exert a highly localized effect on tumor cells while minimizing damage to normal surrounding tissues.
The IFE has been Algeta’s manufacturer and supply partner for Alpharadin for all clinical trials to date. Alpharadin, administered as an injection, is currently undergoing an international Phase III trial in patients with hormone-refractory prostate cancer (HRPC) and skeletal metastases. In December the first clinical center for the trial in the U.S. started enrolling patients. Algeta believes that the treatment will also have potential in bone metastases originating from other types of cancer.
In September 2009, the company received $61 million up front through a deal with Bayer for the global development and commercialization Alpharadin. Algeta has an option to co-promote in the U.S. under a 50% profit-share arrangement. Bayer will commercialize Alpharadin globally and pay tiered double-digit royalties on net sales in markets where there is no co-promotion.
Bayer will contribute a majority of the future development costs of Alpharadin as a treatment for bone metastases resulting from HRPC and from other cancer indications. It will also fully fund any additional late-stage trials. Algeta could receive up to $800 million through the deal, including the $61 million up-front payment, plus development, production, and commercialization milestones.