Celgene Corp. (CELG) signed a definitive agreement to acquire Impact Biomedicines for as much as $7 billion.
Celgene, one of the biggest U.S. biotech companies known for its cancer portfolio, was interested in Impact Biomedicines' development of fedratinib for the treatment of bone-marrow disorders known as myelofibrosis and polycythemia vera.
Under terms of the deal, Celgene will pay about $1.1 billion upfront. A further payment of up to $1.b million will be made if regulatory approval milestones are hit, and up to $4.5 billion will be paid if global annual net sales exceed $5 billion.
San Diego-based Impact Biomedicines, a start-up founded less than two years ago, bought the rights to continue development of fedratinib last year after Sanofi SA stopped research and development in 2013 because of serious side effects including confusion and other neurological issues that were caused by vitamin deficiency-induced brain swelling. The U.S. Food and Drug Administration, last year, agreed to allow Impact Biomedicines to continue testing the drug despite the side effects.
Celgene shares rose 1.5% in premarket trading on Monday.
3. -- Investors Urge Apple to Help Curb iPhone Addiction Among Kids
Jana and CalSTRS combined own about $2 billion worth of Apple shares.
In an open letter to Apple, the investors said the iPhone maker must offer more choices and tools to help children fight addiction to its devices.
"There is a developing consensus around the world including Silicon Valley that the potential long-term consequences of new technologies need to be factored in at the outset, and no company can outsource that responsibility," the letter said. "Apple can play a defining role in signaling to the industry that paying special attention to the health and development of the next generation is both good business and the right thing to do."
An Apple spokesman declined to comment on the letter. The news was first reported by the Wall Street Journal.
Source : https://www.thestreet.com/story/14438215/1/celgene-apple-ces-nvidia-uber-dunkin-donuts-5-things-you-must-know-before-the-market-opens-monday.html