U.S. biotech pharmaceutical firm Celgene said on Sunday that it had agreed to acquire Impact Biomedicines for as much as $7 billion, subject to certain milestones associated with regulatory hurdles and sales performance.
Celgene is interested in Impact Biomedicines’ fedratinib, a kinase inhibitor that has shown promise as a potential treatment for a type of blood cancer called myelofibrosis, according to a statement put out jointly by both companies.
“(Fedratinib) provides strategic options for us to build leadership in this disease.”
The deal is structured in three parts, with Celgene paying $1.1 billion in cash upfront for the San Diego-based company.
Celgene will pay an additional $1.4 billion, depending on the receipt of U.S. Food and Drug Administration milestone approvals.
Finally, Celgene will make payments depending on sales, with a maximum of $4.5 billion due if annual net sales of Impact’s treatments exceed $5 billion.
Celgene is a bio-technology company based in Summit, New Jersey, that specializes in treatments for multiple myeloma.
9 Jan 2018