Stock Update (NASDAQ:CELG): Celgene Corporation to Acquire Quanticel Pharmaceuticals

Celgene Corporation (NASDAQ:CELG) and Quanticel Pharmaceuticals, Inc., a privately held biotechnology company focused on cancer drug discovery, announced a definitive share purchase agreement under which Celgene Corporation will acquire Quanticel. Through the agreement, Celgene will have full access to Quanticel’s proprietary platform for the single-cell genomic analysis of human cancer, as well as Quanticel’s lead programs that target specific epigenetic modifiers to advance Celgene’s pipeline of innovative cancer therapies.

The acquisition culminates a 2011 strategic alliance between Celgene and Quanticel. Over the course of the three-and-a-half year alliance, Quanticel industrialized its single-cell platform for analysis of tumor cellular content and applied it to novel target discovery and the generation of high-quality drug candidates. Multiple drug candidates from Quanticel are expected to enter the clinic in early 2016.

“This acquisition brings into Celgene a highly productive, innovative organization deploying a unique platform of high strategic value” said Tom Daniel, M.D., President of Research and Early Development forCelgene Corporation. “More than acquiring the great team, the novel technology, and the drug candidates, the deal validates an innovative approach to building organizational capabilities.”

“Celgene made clear from the start that they valued both our technology and our team, and this resulted in an extremely collaborative and productive partnership over the past three years,” said Steve Kaldor, Ph.D., chief executive officer at Quanticel. “We look forward to supporting the continued maturation of our pipeline and platform as a part of the Celgene organization.”

“Culmination of this innovative strategic alliance between Celgene and Quanticel demonstrates the ability of corporate partners to successfully collaborate and advance the discovery of new therapies,” said Brad Bolzon, managing director of Versant Ventures, an investor in Quanticel.

The acquisition is subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Under the agreement terms, Celgene will acquire Quanticel for an upfront payment of $100 million in cash. Up to an additional $385 million in contingent payments may be achieved upon research, development, and regulatory advances related to Quanticel’s research and development platform. The acquisition of Quanticel Pharmaceuticals, Inc. is expected to be accounted for as a purchase transaction and Celgeneanticipates that the acquisition will be neutral to 2015 adjusted diluted earnings guidance.¬†(Original Source)

Shares of Celgene closed last Friday at $118.71 . CELG has a 1-year high of $129.06 and a 1-year low of $69.88. The stock’s 50-day moving average is $117.81 and its 200-day moving average is $113.52.

On the ratings front, Celgene¬†has been the subject of a number of recent research reports. In a report issued on April 24, J.P. Morgan analyst Cory Kasimov reiterated a Hold rating on CELG. Separately, on March 31, Citigroup’s Yaron Werber maintained a Buy rating on the stock and has a price target of $143.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Cory Kasimov and Yaron Werber have a total average return of 12.5% and 27.3% respectively. Kasimov has a success rate of 59.3% and is ranked #388 out of 3581 analysts, while Werber has a success rate of 79.7% and is ranked #82.

In total, one research analyst has assigned a Hold rating and 6 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $118.71 which is 26.6% above where the stock closed last Friday.

Celgene Corp is a biopharmaceutical company. It is engaged in the discovery, development and commercialization of therapies designed to treat cancer and immune-inflammatory related diseases.

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