Jazz Pharma Pays $1.5 Billion for Celator
Jazz Pharmaceuticals announced Tuesday morning that it has reached a definitive agreement to acquire Celator Pharmaceuticals for about $1.5 billion.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Jazz Pharmaceuticals PLC (NASDAQ: JAZZ) announced Tuesday morning that it has reached a definitive agreement to acquire Celator Pharmaceuticals Inc. (NASDAQ: CPXX) for $30.25 per share in cash. The deal reflects a premium of 72% to Celator’s closing price on Friday and totals about $1.5 billion.
Celator is preparing an application to the U.S. Food and Drug Administration for its Vyxeos treatment for a form of leukemia known as acute myeloid leukemia (AML), a new orphan drug.
Jazz expects to finance the transaction with a combination of cash on hand and borrowings under its senior secured credit facility. The deal is expected to close in the third quarter of this year.
[nativounit]
The deal is structured as a tender offer and second-step merger, and Jazz said that certain stockholders controlling about 18.4% of Celator’s stock have agreed to tender their shares in the offer.
Bruce Cozadd, chairman and CEO of Jazz, said:
Celator Pharmaceuticals is a strong strategic fit with Jazz Pharmaceuticals. VYXEOS will further diversify our product portfolio and is complementary to our clinical and commercial expertise in hematology/oncology. As Celator is currently preparing a regulatory submission in the U.S. for VYXEOS, this acquisition would add a new orphan product with the potential for short- and long-term revenue generation and expansion of our international commercial platform.
Celator CEO Scott Jackson added:
We believe that Jazz Pharmaceuticals’ clinical and commercial expertise in hematology/oncology and existing international infrastructure will help realize the value of VYXEOS as a treatment to patients with AML. After thoroughly evaluating our strategic options, our board of directors has unanimously determined that this all-cash transaction is in the best interest of our stockholders.
[wallst_email_signup]
Celator’s shares traded up more than 71% in Tuesday’s premarket to $30.03, after closing at $17.53 on Friday. The stock’s 52-week range is $1.12 to $18.18.
Jazz stock traded down about 1.4%, at $150.00 in a 52-week range of $108.50 to $194.73.
Contact [email protected] for any questions or corrections.
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
