Celgene has acquired Abraxis for $2.9 billion in a cash and stock transaction. This acquisition will enable Celgene to continue with their drive and commitment to broaden their market share from hematology treatments into solid tumor medicine.
Abraxane provides a good strategic fit for Celgene’s oncology franchise and appears poised for growth via label expansions, and broader geographic promotion.
This acquisition will enable Celgen to gain the drug Abraxane, approved by U.S. regulators for treating metastatic breast cancer. On the negative side, $2.9billion is a substantial premium. However it expected to increase Cellgenes profit in 2012 with revenue of Albrexane predicted to be $1billion in 2015.
This deal with Abraxis follows the from the $640 million dollar deal that Celgene previously announced in December 2009 with Gloucester Pharmaceuticals. This merger also enabled Celgene to advanced its leadership position in the development of disease-altering therapies for patients with rare and debilitating blood cancers.
In particular, Celgene acquired the histone deacetylase inhibitor Istodax for the treatment of cataneous T-cell lymphoma which was approved in November 2009 by the US FDA.
These recent announcements, together with the $2.9 billon dollar acquisition of Pharmion by Celgene in November 2007, will ensure that Celgene continued commitment to maintain their leading position in the hematology and oncology market continues unabated.
