Celgene Corporation is expanding its pipeline of innovative cancer drugs, through its acquisition of privately-held biotech, Quanticel Pharmaceuticals.
The companies announced today a definitive share purchase agreement under which Celgene will acquire Quanticel in exchange for its proprietary platform for the single-cell genomic analysis of human cancer, as well as Quanticel’s lead program that targets specific epigenetic modifiers. According to the companies, multiple Quanticel drug candidates are expected to enter the clinic early next year.
Celgene is paying up to $485 million for the cancer-focused company. Quanticel’s proprietary platform is based on the work from Stanford professors Stephen Quake and Michael Clarke. Over the past three and a half years, the company has been refining its technology, with a $45 million allowance from Celgene.
“This acquisition brings into Celgene a highly productive, innovative organization deploying a unique platform of high strategic value,” said Tom Daniel, MD, President of Research and Early Development of Celgene Corporation. “More than acquiring the great team, the novel technology, and the drug candidates, the deal validates an innovative approach to building organizational capabilities.”
Under the deal, Celgene will pay Quanticel $100 million upfront in cash, and up to an additional $385 million in contingent payments if certain research, development and regulatory advances are achieved. The acquisition is subject to customary closing conditions. Celgene expects the acquisition to be accounted for as a purchase transaction and anticipates that the acquisition will be neutral to 2015 adjusted diluted earnings guidance.
“Celgene made it clear from the start that they valued both our technology and our team, and this resulted in an extremely collaborative and productive partnership over the past three years,” said Steve Kaldor, PhD, chief executive officer at Quanticel. “We look forward to supporting the continued maturation of our pipeline and platform as a part of the Celgene organization.”
Source: Celgene Corporation
Last updated: 4/27/15; 10:55am EST