Bayer is in early talks to acquire Norwegian partner Algeta for about 14.8 billion kroner, a move that would give Germany's biggest drugmaker full control of a prostate cancer medicine and a pipeline of experimental radiation therapies.

Algeta received a preliminary offer for 336 kroner (€40) a share, it has said in a statement. The proposal values Algeta at 27 per cent more than yesterday’s closing price of 264.6 kroner. The shares reached 349.70 kroner, suggesting investors expect a higher bid.

Bayer is funding some medical trials for Algeta’s medicine Xofigo; buying the company would mean it would not need to share profits or pay royalties on the medicine. Xofigo is designed to treat the secondary cancer that has settled in the bones. Prostate cancer is the most common among men after skin cancer. – (Bloomberg)