By Josh Beckerman
Celgene Corp. will make an initial payment of about $1 billion,
including a stock purchase, as part of a ten-year collaboration
with Juno Therapeutics Inc. on cancer and autoimmune disease
treatments.
In after-hours trading, Juno shares were up 49% to $69.07.
Upon closing, which is expected during the third quarter,
Celgene will pay Juno about $150 million and buy 9.1 million Juno
shares for $93 each. Celgene will have the right to buy additional
equity and the right to nominate a Juno board member.
The companies will initially focus on Chimeric Antigen Receptor
Technology and T Cell Receptor technologies.
"This transaction strengthens Celgene's position in the emerging
and transformative area of immuno-oncology," Celgene Chief
Executive Bob Hugin said in a statement.
Under the agreement, Celgene has the option to be the
commercialization partner for Juno's oncology and cell therapy
autoimmune product candidates, including Juno's CD19 and CD22
directed CAR-T product candidates.
Write to Josh Beckerman at josh.beckerman@wsj.com
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