Jazz Pharmaceuticals to acquire Celator in $1.5 billion deal

pharmafile | May 31, 2016 | News story | Manufacturing and Production, Sales and Marketing $1.5 billion, Vyxeos, acquisition, celator, jazz, leukaemia, merger, oncology 

Jazz Pharmaceuticals (NASDAQ: JAZZ) has announced that it has entered into a definitive merger agreement with Celator Pharmaceuticals (NASDAQ: CPXX) that will see Jazz acquire the company in a deal worth $1.5 billion, or $30.25 per share.

The deal will see Jazz expand its haematology and oncology portfolio with late stage trial drug, Vyxeos (cytarabine/daunorubicin), the centrepiece of this acquisition. The drug recently received a breakthrough therapy designation from the US Food and Drug Administration (FDA), and is indicated for the treatment of acute myeloid leukaemia. It has also been granted orphan drug designation in the US and Europe. Jazz will now own worldwide development and commercialisation rights to Vyxeos.

With shares of Celator, at the time of writing, only worth $17.53 it is clear that Jazz is paying a premium for the drugs firm. Shares in Celator have more than doubled in the past three months, beginning with the positive results of late-stage trials for Vyxeos. The transaction is set to close in the third quarter of 2016 of 2016, with the deal expected to accretive to non-GAAP adjusted EPS beginning in 2018 and beyond.

Bruce Cozadd, chairman and CEO at Jazz Pharmaceuticals, comments: “Celator Pharmaceuticals is a strong fit with Jazz Pharmaceuticals. Vyxeos will further diversify our product portfolio and is complementary to our clinical and commercial expertise in haematology/oncology. As Celator is currently preparing a regulatory submission in the US 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.”

Scott Jackson, CEO at Celator, says: “We believe that Jazz Pharmaceuticals’ clinical and commercial expertise in haematology/oncology and existing international infrastructure will help realise the value of Vyxeos as a treatment to patients with acute myeloid leukaemia. After thoroughly evaluating our strategic options, our board of directors has unanimously determined that this all-cash transaction is in the best interest of our stockholders.”

Sean Murray

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