Bayer to buy Norway-based Algeta for $2.4 billion

OSLO, Norway — German chemical and pharmaceutical giant Bayer plans to buy Norwegian drug maker Algeta for $2.4 billion, Algeta confirmed Tuesday.

Responding to earlier media reports, the Norway-based maker of cancer drugs said Bayer would acquire it for 336 krone per share, equal to about $55.05. The company's share price increased to 349.40 krone, or $57.21 per share, in late-afternoon trading Tuesday on the Oslo Stock Exchange.

The two companies signed an $800 million drug development deal in September 2009. Most recently, the Food and Drug Administration approved their drug Xofigo (radium Ra 223 dichloride), for late-stage prostate cancer, in May of this year.