Juno Therapeutics Inc. (NASDAQ: JUNO) shares surged on Wednesday after The Wall Street Journal had reported that Celgene Corp. (NASDAQ:CELG) was in talks about acquiring Juno. Celgene shares fell 2 percent, while Juno shares were up 48 percent.
The agreement could happen in the next few weeks, but the exact terms of the deals could not be determined, said sources familiar with the matter. Juno had a market value of $5.5 billion as of Tuesday, before surging to $7.6 billion on Wednesday.
Celgene has been struggling to diversify its portfolio before its drug Revlimid loses patent protection.
Celgene’s potential acquisition of Juno will come shortly after its agreement to acquire Impact Biomedicines for $7 billion. Celgene’s acquisition will be focused on Impact’s drug, fedratinib to treat blood related cancers and diseases.
Juno’s pipeline consists of many cancer fighting drugs and treatments or CAR T-cell therapy (chimeric antigen receptor).
Celgene is looking to bolster its blood-cancer related drugs and treatments and acquiring Juno would be ideal for Celgene, especially after its acquisition of Impact.