Celgene Corp (NASDAQ:CELG) announced on Sunday that it had agreed to acquire privately-owned biotech peer Impact Biomedicines for up to US$7bn, 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.
Celgene is paying US$1.1bn in cash upfront for the San Diego-based company, plus an additional US$1.4bn depending on the receipt of US Food and Drug Administration milestone approvals.
The firm will also make payments depending on sales, with a maximum of US$4.5bn due if annual net sales of Impact’s treatments exceed US$5bn.
New Jersey based Celgene specialises in treatments for multiple myeloma. In pre-market trading, its shares were 1.3% higher at US$106.38.