Incurable blood cancers targeted in Celgene's $9B deal to acquire Juno Therapeutics
Biopharmaceutical firm Celgene will pay about $9 billion to acquire the shares of Juno Therapeutics that it doesn't already hold, giving the company a much-needed financial boost and paving the way for new medicines designed to attack incurable blood cancers.
Celgene, which already owned 9.7% of Juno, will acquire the rest for $87 per share.
The deal comes amid anticipation of regulatory approval in 2019 for Juno's JCAR017, a treatment for a type of lymphoma.
Celgene said it anticipates peak annual sales of $3 billion for the drug.
That would help offset an anticipated reduction in revenue when Celgene begins facing generic competition in 2022 for its blockbuster drug Revlimid, which represented more than 62% of the company's 2016 revenue, according to a public filing.
"The acquisition of Juno builds on our shared vision to discover and develop transformative medicines for patients with incurable blood cancers," Celgene CEO Mark Alles said in a statement.
"Juno's advanced cellular immunotherapy portfolio and research capabilities strengthen Celgene's global leadership in hematology and adds new drivers for growth beyond 2020."
The two companies have been collaborating since June 2015 on development of therapies for patients with cancer and autoimmune diseases.
Juno's stock jumped 27.3% in pre-market trading Monday to $86.34.
Celgene shares fell 1.1% to $101.50.
Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.