HELSINKI, June 2 (Reuters) - Finnish drug maker Orion said on Monday it had struck a deal with German peer Bayer to develop a prostate cancer drug, with the deal allowing Orion to upgrade its full-year sales and profit outlook.
The two companies will this year start a clinical phase III trial of the drug, called ODM-201, in patients with non-metastatic prostate cancer that cannot be treated by standard hormone therapy, Orion said in a statement.
Orion will receive an upfront payment of 50 million euros ($68 million), it said. It raised its outlook for the year, and now says its net sales and operating profit will be at a similar level as last year.
Bayer said the deal would complement its prostate cancer treatment business. It already has Xofigo, designed to target bone metastases from prostate cancer, which according to Bayer could become a “blockbuster” product with annual sales of least 1 billion euros. ($1 = 0.7328 Euros) (Reporting by Sakari Suoninen; Editing by Ludwig Burger)