Celgene to Buy Juno Therapeutics for $9 Billion -- Update

By Cara Lombardo 

Celgene Corp. on Monday said it agreed to buy Juno Therapeutics Inc. for $87 a share in cash, or about $9 billion, in a move that will expand Celgene's portfolio of blood-cancer drugs.

The Wall Street Journal reported last week the two companies were in talks about a deal.

Juno shares jumped 27% in premarket trading.

The deal will add a lymphoma treatment, expected to gain regulatory approval in 2019, to Celgene's portfolio.

Earlier this month, Celgene agreed to buy closely held Impact Biomedicines. Celgene is to pay $1.1 billion upfront and could make billions of dollars of additional payments if Impact hits certain milestones.

Celgene, based in Summit, N.J., is one of the biggest U.S. biotech companies. It is known for its blood-cancer drugs, notably top-selling product Revlimid, but has been trying to diversify its portfolio before Revlimid loses patent protection in the U.S.

Seattle-based Juno has a research and development facility in Seattle and a manufacturing facility in Bothell, Wash.

The deal, which has been approved by both companies' boards, is still subject to closing conditions. Celgene expects the transaction to close in the first quarter.

Celgene said the deal doesn't change its 2020 financial targets of net product sales of $19 billion to $20 billion and adjusted earnings per share of more than $12.50.

Write to Cara Lombardo at [e-mail]

(END) Dow Jones Newswires

January 22, 2018 07:44 ET (12:44 GMT)

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