SOURCE: Algeta ASA

September 02, 2005 02:00 ET

Algeta ASA Raises Euro 23 Million in Series A Round

Funds Support Continued Development of Alpharadin, Its Lead Cancer Therapeutic

OSLO, NORWAY -- (MARKET WIRE) -- September 2, 2005 -- Algeta ASA, a therapeutics company dedicated to the development of novel anticancer agents based on alpha particle emitting radionuclides, announced today the closing of a Series A round of financing totaling NOK 185 million (Euro 23 million/US$29 million). The funds raised will support the continued development of the Company's lead product candidate, Alpharadin™, through its ongoing Phase II clinical trials and into pivotal Phase III trials as a potential new treatment for bone metastases arising from primary prostate cancer.

Alpharadin, is a novel bone-seeking experimental radiopharmaceutical based on the alpha particle emitter radium-223.

The syndicate of international investors included new investors HealthCap, Advent Venture Partners and SR One. Existing investors Selvaag Venture Capital, NorgesInvestor, Marlin Verdi AS and several smaller investors also participated in the round.

"We are very pleased to have attracted funding for our company from such an experienced, international group of investors, in addition to the continued support and commitment from our current investors. This is a strong endorsement for the company, its employees and the progress being made," says Dr. Thomas Ramdahl, CEO of Algeta. "With this strong financial base, we are now well placed to advance our lead product candidate, Alpharadin, through late-stage clinical trials towards commercialization, and to extend our development pipeline of new therapeutics based on our exciting alpha particle technology. We look forward to working with our new investors and greatly appreciate their experience and resources, which will assist our company going forward."

"Algeta's lead product candidate, Alpharadin, addresses a major market opportunity in the field of oncology. Bone metastases are a devastating consequence of the progression of certain cancers and current treatments are largely ineffective. HealthCap is very excited to be supporting the Algeta team in their efforts to develop new therapeutics that target this important unmet medical need," said Per Samuelsson, partner at HealthCap.

Concurrent with the financing, Per Samuelsson, Partner, HealthCap; Patrick Lee, General Partner, Advent Venture Partners; and Dr. Kent Gossett, Principal, SR One; will join Stein Annexstad, Managing Director, representing NorgesInvestor; Dr. Jens Petter Falck, Partner, Selvaag Venture Capital; and John Berriman, Chairman; on Algeta's Board of Directors.

Algeta was advised by BioScience Managers Limited (London, UK) during this financing round.

Notes to Editors

About Algeta ASA

Algeta ASA, headquartered in Oslo, Norway, is a private therapeutics company dedicated to the development of novel anticancer therapeutics based on alpha particle emitting radionuclides. The Company was founded in 1997 as Anticancer Therapeutic Inventions.

Algeta's lead product candidate, Alpharadin, is a novel bone-seeking experimental radiopharmaceutical based on the alpha particle emitter radium-223. Alpharadin is currently in Phase II clinical trials as a potential new treatment for bone metastases from prostate cancer.

An estimated 1.5 million patients worldwide suffer with bone metastases and there are approximately 300,000 new cases per year. Prostate and breast cancers account for more than 80% of all cases. Median survival for patients is three years and there are no effective therapies.

Alpha emitters have not until recently been a significant therapeutic modality. However, discoveries in radiochemistry and recent advances in the understanding of tumor and radiation biology led Algeta's scientific founders -- Roy Larsen and Oyvind Bruland -- to conceive how the unique features of alpha emitters, such as high potency and short range, could be exploited to create new therapeutic candidates promising unrivalled potency without unacceptable toxicities.

For more information, visit us at www.algeta.com.

Contact Information

  • For further information, please contact:
    Dr. Thomas Ramdahl
    CEO
    Algeta ASA
    +47 23 00 79 90

    Mark Swallow PhD / Helena Podd
    Citigate Dewe Rogerson
    +44 (0)207 638 9571