US: Celgene in US$7b bid for privately held Impact Biomedicines

Celgene announced that it has agreed to acquire privately-owned biotech peer Impact Biomedicines for up to US$7 billion, subject to certain milestones associated with regulatory hurdles and sales performance.

The biotech pharmaceutical firm pointed out that it is interested in Impact Biomedicines’ fedratinib product—a kinase inhibitor which has shown promise as a potential treatment for a type of blood cancer called myelofibrosis.

“Myelofibrosis is a disease with high unmet medical need as the number of patients who are ineligible for or become resistant to existing therapy continues to increase,” said Nadim Ahmed, Celgene’s president of hematology and oncology.

“(Fedratinib) provides strategic options for us to build leadership in this disease.”

The deal is structured in three parts, with Celgene paying US$1.1 billion in cash upfront for the San Diego-based company.

Celgene will pay an additional US$1.4 billion, depending on the receipt of US Food and Drug Administration milestone approvals.

Finally, Celgene will make payments depending on sales, with a maximum of US$4.5 billion due if annual net sales of Impact’s treatments exceed US$5 billion.

Full Content: Fortune

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