BerGenBio has decided to merge with Norwegian biotechnology firm Oncoinvent after the failure of its primary oncology drug, bemcentinib, in a phase 2 trial for non-small cell lung cancer.

This decision to merge follows BerGenBio's unsuccessful drug trial earlier in 2025, which prompted the company to explore strategic alternatives, including a merger or sale.

The merged company will operate under the Oncoinvent name, focusing on the development of Radspherin, a leading radiopharmaceutical asset.

Radspherin is currently undergoing a phase 2 study across the U.S., UK, and Europe, with early findings showing promise and results expected in late 2026.

The merger will provide an additional 45 million kroner ($4.5 million) to support the clinical development of Radspherin, which is being tested for treating peritoneal cancer after colorectal or ovarian surgeries.

To ensure financial stability extending into 2027, the merger will also include a rights offering of up to 130 million kroner ($12.9 million).

Under the merger agreement, Oncoinvent's shareholders will own 75% of the new entity, while BerGenBio's shareholders will retain 25%.

Following the merger, Oncoinvent's valuation is set at 195.6 million kroner ($19.4 million), while BerGenBio's valuation will be 65 million kroner ($6.6 million).

Anders Tullgren, chair of BerGenBio's board, believes the merger represents a favorable outcome for current investors, allowing them to join a promising company with effective Norwegian radiopharmaceutical technology.

Oncoinvent CEO Øystein Soug expressed optimism about the company's future and its role in advancing radiopharmaceutical therapies for peritoneal cavity cancers.