Celgene Corporation (CELG) and Pharmion Corporation (PHRM) have signed a merger agreement where Celegen has agreed to purchase all common stock of Pharmion Corporation. Under the terms of this agreement, Celgene will acquire all of the outstanding shares of Pharmion common stock for $72.00 per share, payable in a combination of cash and shares of Celgene common stock.
This acquisition will allow Celegen to become a global leader in the hematology/oncology field. Because the transaction will fuse together three advantageous medical therapies; Revlimid, Thalomid and Vidaza, Celegen will be able to treat various patient ailments worldwide.
Sol J Barer, PhD and CEO of Celegene, stated “The acquisition of Pharmion is an exceptional strategic fit that will expand our role as a leader in hematology and oncology. Our combined global infrastructure will leverage the therapeutic and commercial potential of Pharmion’s products, particularly Vidaza, which has the potential to become a major global therapy. By bringing together the talents and resources of both companies, we move closer to our vision of becoming a leading hematology and oncology company in the world, expanding our industry leading programs for safety, access and patient support.”
Pharmion Corporation is a leading drug development company that currently has four products sold on the market and several other products in development. One of Pharmion’s most successful products, called ‘Vidaza’, has been approved in the US for myelodysplastic syndrome. This product’s Phase III clinical trial have shown that the overall survival rate of such a cancer is 74% greater when compared to similar treatment. Patients receiving Vidaza had a two-year survival rate of 50.8 percent versus 26.2 percent for those in the comparator arm.
“The combination of our two product portfolios and organizations represents the opportunity to create a leading global hematology/oncology company,” said Patrick J. Mahaffy, President and Chief Executive Officer of Pharmion Corporation. “In particular, I would like to thank the Pharmion employees who have contributed so much to the development of our company and to ensuring that our products are available to improve the lives of cancer patients in the US, Europe, and many international markets. We believe that Celgene is now exceptionally well positioned to take advantage of these efforts, as well as those of its own strong organization, to create a truly unique global biopharmaceutical company.”
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