Celgene (NASDAQ: CELG) agreed on Monday to buy the rest of Juno Therapeutics (NASDAQ: JUNO) it doesn't already own for about $9 billion in cash to gain access to Juno's pipeline of CAR-T cancer drugs.
Celgene owns 9.7% in Juno and will offer $87 per share for the rest of the company. Shares of Juno Therapeutics were up $18.31, or 27%, to $86.12 on the news, to just below the offering price.
The clock was ticking for Celgene, Mike Bailey, director of research at FBB Capital Partners, told media outlets last week.
Celgene loses patent protection by 2022 for Revlimid, its top-selling multiple myeloma drug that brought in about 60% of fiscal third quarter revenue of nearly $3.3 billion.
Once the patent runs out, Celgene could feel pressure from generics within a few years, Bailey said.
Celgene is working with Seattle-based Juno on an experimental new gene therapy designed to treat people with relapsed or refractory aggressive B-cell non-Hodgkin lymphoma.
Juno said it could expect approval for its treatment by the end of 2018.
The news comes about a week after the biotech giant announced it would buy Impact Biomedicines for $7 billion. Both Impact and Juno offer drugs that could boost Celgene in the market for blood-cancer treatment.
Jefferies analysts called the potential acquisition "smart," because "the buyout would enable Celgene to integrate Juno's entire cell therapy platform and bring it all in house."
Celgene shares, for their part, receded $2.18, or 2.1%, to $100.47 in early Monday trade.
