Celgene Corporation (NASDAQ: CELG) and Impact Biomedicines announced on Sunday that the parties have entered into an agreement, in which Celgene will acquire Impact Biomedicines for $1.1 billion and up to an additional $1.25 billion in contingent payments.
Celgene may pay up to $1.25 billion depending on if Biomedicines drug fedratinib can obtain approval milestones. Previously, Biomedicines clinical trial for fedratinib was put on hold by the U.S. Food and Drug Administration, but lifted in August 2017.
Biomedicines is currently developing fedratinib for myelofibrosis and polycythemia vera, which Celgene will acquire through the transaction. In clinical trials, Biomedicines’ treatments showed strong improvements meeting primary and secondary endpoints.
"We believe fedratinib is uniquely positioned as a potential treatment for myelofibrosis and it provides strategic options for us to build leadership in this disease with luspatercept and other pipeline assets." said Nadim Ahmed, President, Hematology and Oncology for Celgene.
"We launched Impact Biomedicines and based on our thorough review of the data, fedratinib presents a compelling risk benefit profile in both treatment-naïve patients and patients who are resistant or intolerant to other JAK2 therapies," said Dr. John Hood, Chief Executive Officer of Impact. "We believe Celgene is the ideal organization to follow through on our mission of maximizing fedratinib's potential for patients with myelofibrosis."
The transaction is expected to close in the first quarter of 2018.