Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) announced to buy Celator Pharmaceuticals Inc. (NASDAQ:CPXX) on Tuesday for about 1.5 billion. The deal will help the company to gain a promising leukemia medicine for a rare blood cancer.
Ireland-based Jazz said it will pay $30.25 per share in cash for Celator, which represents a 72.6 percent premium to Celators’ closing price on Friday.
Celator’s shares surged 70.85 percent to $29.95 in the early trading in New York.
The deal gives Jazz Celator’s leading drug Vyxeos, which is currently in development and offers treatment for a rare blood cancer known as acute myeloid leukemia. The drug had already won orphan-drug status from regulators in the U.S. and Europe.
In March, the company announced positive results for a clinical trial of Vyxeos, which sent the company's stock up more than 400% in a single day. The stock had surge 896 percent year to date.
“As Celator is currently preparing a regulatory submission in the U.S. for Vyxeos, this acquisition would add a new orphan product with the potential for short- and long-term revenue generation and expansion of our international commercial platform,” said Bruce Cozadd, Jazz’s Chairman and Chief Executive.
The company said it will submit a new drug application for Vyxeos to the U.S. Food and Drug Administration by the end of the third quarter.
The deal is expected to close in the third quarter of 2016.
Jazz was advised by RBC Capital Markets and Cooley LLP. While Celator was advised by MTS Health Partners and Kirkland & Ellis LLP.