Thursday, October 23, 2014
- Celgene (CELG +5.9%) likes its partnership with privately-held Sutro Biopharma so much that is has inked another deal with the antibody-based therapeutics developer. Under the terms of the agreement, Sutro receives a upfront payment of $95M that includes an equity stake, $90M during the research phase and potentially more than $1B, including milestones.
- Celgene also has an option to buy Sutro under undisclosed terms.
- The partners will work on PD-1 and PD-L1 inhibitors, the most promising cancer immunotherapy area. Sutro's value proposition is a better way to build antibody-drug conjugates that are more selective in their binding targets. Its technology enables a simpler method of making biologics, more akin to small molecule drugs.
- Foster Wheeler (FWLT +0.6%) has completed the acquisition of MDM Engineering Group (OTC:MDMEF) on terms consistent with the merger implementation agreement entered into on March 12, 2014.
- "This acquisition...provides a platform for growth in Africa, one of the fastest growing mining regions in the world, and in other regions," says Foster Wheeler CEO J. Kent Masters.
- MDM will now become part of the rapidly growing Minerals and Metals group within Foster Wheeler.
- Previously: Foster Wheeler, MDM receive merger approval
- KKR (KKR +1.4%) is taking a serious look at PetSmart (PETM +0.6%), according to the New York Post.
- The investment firm has a nice track record in the pet supplier business after guiding Pets at Home to a profitable IPO.
- Firdt-round bids on PetSmart are due in by the end of the month with JPMorgan overseeing the action.
- Investors haven't really assigned a buyout premium on PETM as shares trade lower than they did three months ago.
- Though it rejected Iliad's overtures, Deutsche Telekom (OTCQX:DTEGY) is still trying to find a suitor for T-Mobile USA (TMUS +2.7%), Germany's Manager Magazin reports.
- The magazine speculates America Movil (AMX +0.8%), which no longer counts AT&T as an investor, could make a bid. For now, Carlos Slim's carrier only operates in the U.S. through its TracFone Wireless prepaid MVNO.
- AMX is also about to get a windfall from the sale of Mexican assets being unloaded to appease regulators.
- Emcore's (NASDAQ:EMKR) is selling its tunable laser and transceiver optical component businesses to NeoPhotonics (NYSE:NPTN) for $17.5M - $1.5M in cash and a $16M promissory note. The deal is expected to close in early January 2015.
- The businesses accounted for 25% of Emcore's FY14 (ended Sep. '14) revenue. Emcore notes the product lines being sold haven't historically been profitable.
- NeoPhotonics: "EMCORE's narrow linewidth tunable laser product line is highly complementary to our broad existing portfolio of optical components for [100G] coherent transport systems ... EMCORE's External Cavity Laser tunable laser has the narrowest linewidth in the industry, which we believe will become increasingly important for advanced modulation schemes at 400G and beyond."
9:46 AM| Comment!
8:03 AM| Comment!