Mesoblast Limited (ASX:MSB, USOTC: MBLTY) will issue 15.3 million shares to U.S. based Celgene Corporation (NASDAQ:CELG) with a market capitalisation of US$93 billion in a placement.
Under the deal, global biopharmaceutical company Celgene will purchase 15.3 million ordinary shares in regenerative medicine company Mesoblast for a consideration of A$58.5 million at a price of A$3.82 per share.
In addition, Celgene has a six-month right of first refusal over some of Mesoblast’s proprietary stem cell products.
Celgene is engaged in the development and commercialization of innovative therapies for the treatment of cancer and immune-inflammatory related diseases.
The major is known to be looking to add to its cellular and regenerative medicine pipeline. The agreement provides Celgene with a "first look see" on certain disease fields.
The investment is expected to be a fillip for Mesoblast.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.