Juno Therapeutics, Inc. (NASDAQ: JUNO) surged more 35% during aftermarket trading hours on Monday night, as news on a major investment valued at $1 billion from Celgene Corporation (NASDAQ: CELG) was published.
Juno Therapeutics is a biopharmaceutical company focused on developing cell-based cancer immunotherapies. The company has become popular among the scientific community and biotech investors due to its technology platform, which is based on chimeric antigen receptor (CAR) and T cell receptor (TCR) technologies that genetically engineer T cells to recognize and kill cancer cells. Companies like Kite Pharma (NASDAQ: KITE) and Bluebird Bio (NASDAQ: BLUE) also have products in their pipelines based on the Car-T therapy technology.
Celgene Corp has officially started a 10 year partnership with Juno Therapeutics, and the billion dollar investment will be dedicated in providing Juno with the financing required for the development of immunotherapy drug for the treatment of cancer and autoimmune diseases.
Celgene Corp revealed that the payment structure will consist of an upfront pay of $150 million and a purchase of about $9.1 million newly issued Juno shares at $93 a share, which is almost double Juno's current share price.
CEO of Juno Therapeutics, Hans Bishop, called this new partnership a “transformative partnership” and said that it “could be one of the most productive and exciting collaborations in this industry.” Hans also noted that, “We both have strong independent pipelines, and we think that the scientific synergy between our groups are really going to put us in an unparalleled position to take advantage of that.”