Celgene (CELG -0.7%) enters into a strategic collaboration and will make a $100M upfront cash payment for an exclusive option giving it the right to buy Acetylon Pharmaceuticals - a developer of small molecule drugs that target epigenetic mechanisms for the treatment of cancer and other critical human diseases.
Acetylon will retain control of its drug development program during the option period.
If Celgene exercises its option, an upfront payment with a minimum floor of $500M, will be paid at closing.
Additionally, Acetylon shareholders will be eligible to receive potential future milestone payments totaling up to $1.1B depending upon certain targets.
Onyx (ONXX) shares rocket 51% to $130.98 after the company says that it's rejected a $120/share offer from Amgen (AMGN +0.6%) and that it's seeking buyers after receiving inquiries. There's no shortage of speculation about who could acquire Onyx, with Bayer (BAYZF.PK), Celgene (CELG), Novartis (NVS), Bristol-Myers (BMY), AstraZeneca (AZN), Eli Lilly (LLY), Gilead (GILD) and Pfizer (PFE) all mentioned. However, Forbes' Matthew Herper notes that potential blockbuster blood-cancer drug Kyprolis has only received accelerated FDA approval, which can be revoked. Big Pharma may have wanted to await further trial results later this year amid concerns about Kyprolis' safety.
Celgene (CELG) is one of two firms other than GSK that are considering buying Human Genome (HGSI) and are holding talks with the company, Reuters reports. There's no word on who the second suitor is, although any deal would most likely be a merger of equals. With Human Genome holding an auction, the deadline for bids is July 16.
Shares of microcap drug developer EntreMed (ENMD +23%) soar on the back of partner Celgene's (CELG -1.4%) acquisition of fellow cancer-therapy developer Avila Therapeutics. The company derives most of its revenue from royalty payments on sales of Celgene's drug Thalomid.
Celgene (CELG) to acquire privately-held biotech firm Avila Therapeutics for $350M in cash, plus up to $190M for milestones related to AVL-292, as well as up to $380M in potential milestone payments contingent upon the development and approval of candidates generated from the Avilomics platform. (PR)
Lagging biotechs Amgen (AMGN -0.2%) and Celgene (CELG -2%) may dive into deal-making this year in seeking to return to the industry’s high-growth roots, Bloomberg speculates. Investors in the space have rewarded strategic acquisitions and companies that continue to develop innovative therapies, rather than dividend-paying low-growth stocks.