BerGenBio and Oncoinvent to Merge Amidst Former’s Cancer Drug Failure

BerGenBio, impacted by the unsuccessful outcome of its primary oncology medication, has chosen to merge with the Norwegian biotechnology firm Oncoinvent.

The agreement will result in Oncoinvent’s shareholders possessing 75% of the consolidated entity, while BerGenBio’s owners would retain the remaining 25%. The resultant firm, operating under the Oncoinvent identity, will concentrate on Oncoinvent’s primary radiopharmaceutical asset, Radspherin.

BerGenBio, headquartered in Bergen, Norway, contextualized its decision to proceed with the deal after the halting of its AXL kinase inhibitor, bemcentinib earlier this year. The company attributed the insufficient results in a phase 2 trial of the primary candidate for non-small cell lung cancer and declared that it will now evaluate its strategic alternatives, including a possible merger or sale.

Anders Tullgren, chair of BerGenBio’s board, stated in a postmarket release that the merger, which has received approval from both companies’ boards, was the outcome of a thorough evaluation process that considered various strategic paths for BerGenBio.

He added that the merger offers BerGenBio shareholders the opportunity to become part of a promising company utilizing Norwegian radiopharmaceutical technology, which has already demonstrated encouraging early signs of effectiveness without raising safety issues. He expressed confidence that this path represents the most favorable outcome for BerGenBio’s current investors.

As a result of the merger, Oncoinvent is now worth 195.6 million kroner ($19.4 million) and BerGenBio’s value stands at 65 million kroner ($6.6 million).

The agreement would provide an extra 45 million kroner ($4.5 million) to support Oncoinvent’s clinical development strategy, led by Radspherin, an alpha-emitting radionuclide radium-224 now undergoing trials for peritoneal cancer in patients post-surgery for colorectal or ovarian tumors.

Radspherin is now undergoing assessment in a phase 2 study in the U.S., UK, and Europe, with results anticipated in the latter part of 2026. According to the announcement, Oncoinvent said that early effectiveness findings have been very promising.

Upon the completion of the merger, the strategy includes a fully underwritten rights offering of up to 130 million kroner ($12.9 million), which is expected to provide a financial runway extending beyond that timeframe and into 2027.

Oncoinvent CEO Øystein Soug expressed enthusiasm about the company’s future and reaffirmed their commitment to advancing the development of Radspherin as a treatment for ovarian cancer.

He noted that the company’s randomized phase 2 trial was progressing as planned. With improved financial resources, he stated that the company is well-positioned to play a transformative role in the field of radiopharmaceutical therapies, aiming to enhance outcomes for patients suffering from cancers within the peritoneal cavity

Based in Oslo, Oncoinvent was established by Øyvind Bruland and Roy Larsen, the innovators of Xofigo, a radiopharmaceutical for prostate cancer that Bayer purchased in 2014 via the buyout of Algeta.