Biotechnology company Celgene said it is expanding its array of cancer treatments with a deal to buy Abraxis BioScience for $2.9 billion in cash and stock.
Celgene to buy maker of cancer drugs
Celgene Corp. said the transaction could add $1 billion to its annual sales by 2015. The maker of Revlimid and Vidaza said under terms of the deal, shareholders of Abraxis will receive $58 and 0.2617 shares of Celgene for each Abraxis share they own. That values Abraxis at $71.93 per share based on Celgene's latest closing price. That is a 17% premium above Abraxis' closing price of $61.31 on Tuesday.
Cancer treatments are expensive and they are a major area of growth in the drug industry, which makes them a tempting target for buyers like Celgene.
Abraxis Bioscience makes the injectable cancer drug Abraxane, which is approved as a treatment for breast cancer and is being tested against skin, lung, and pancreatic cancer. If Abraxane is approved for those other uses, the value of the deal could rise to more than $3.55 billion.
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