Juno Shares Surge as Company Enters Pact With Celgene, Will Get $1 Billion Payment -- Update

   By Josh Beckerman 
 

Celgene Corp. will make an initial payment of about $1 billion, including a stock purchase, as part of a ten-year collaboration with Juno Therapeutics Inc. on cancer and autoimmune disease treatments.

In after-hours trading, Juno shares were up 49% to $69.07.

Upon closing, which is expected during the third quarter, Celgene will pay Juno about $150 million and buy 9.1 million Juno shares for $93 each. Celgene will have the right to buy additional equity and the right to nominate a Juno board member.

The companies will initially focus on Chimeric Antigen Receptor Technology and T Cell Receptor technologies.

"This transaction strengthens Celgene's position in the emerging and transformative area of immuno-oncology," Celgene Chief Executive Bob Hugin said in a statement.

Under the agreement, Celgene has the option to be the commercialization partner for Juno's oncology and cell therapy autoimmune product candidates, including Juno's CD19 and CD22 directed CAR-T product candidates.

Write to Josh Beckerman at [e-mail]

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