March 1 (Bloomberg) -- Algeta ASA, the Norwegian drugmaker developing a treatment for prostate cancer with Germany’s Bayer AG, climbed in Oslo trading after an increase in the number of possible users of the drug.
Algeta, based in the Norwegian capital, advanced as much as 2.1 percent to 196.6 kroner. A close at that level would be the highest since Sept. 20, 2011. More than 56,000 shares have been traded so far today, about 50 percent of the three-month average daily volume.
Radium-223 dichloride, formerly known as Alpharadin, can now be made available to patients in a serious condition in the U.S. and who are unable to participate in a controlled clinical trial under a program started by Bayer last month, Algeta said in its fourth-quarter report yesterday.
“We have raised our estimates on Alpharadin as the Expanded Access Program gains more ground,” Danske Bank A/S wrote in an e-mailed note to clients. “This results in more centers being licensed to use Alpharadin before approval and launch,” said the bank. Danske increased its 12-month price target on Algeta to 225 kroner from 200 kroner.
Algeta and Bayer, who have said they see “blockbuster” potential for Alpharadin, submitted the drug to regulatory authorities in the U.S. and Europe in December. Radium-223 dichloride is designed to treat bone metastases resulting from prostate cancer, which can lead to spinal-cord compression, paralysis and bladder dysfunction.
A study showed radium-223 treatment significantly delayed the time to a first skeletal-related event, Algeta said on Feb. 15. An October study showed administering chemotherapy after radium-223 dichloride had no deleterious effect on patients overall survival, it said.
Shares in Algeta traded 0.6 percent higher as of 12:54 p.m., extending its gain so far this year to 25 percent and giving the company a market value of 8.2 billion kroner ($1.4 billion).
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