Celgene (NASDAQ CELG) has announced a buyout deal of Abraxis Bioscience (NASDAQ ABII).
Celgene will pay $2.9 billion in cash and stock for Abraxis BioScience Inc., which values ABII at $71.93 per share based on Celgene's latest closing price.
Abraxane, which is Abraxis BioScience's inject-able cancer treatment, is currently being tested against skin, lung, and pancreatic cancer. Celgene will pay Abraxis $300 million if Abraxane is approved as a pancreatic cancer treatment with an additional $100 million coming due if Abraxane is approved by April 1, 2013. In addition CELG will pay ABII $250 million if Abraxane is approved as a treatment for non-small cell lung cancer.
CELG stock price is currently down 4.75% to $50.71 a share in trading on the NASDAQ.
Shares of ABII are up 20.71% to $74.01 a share.
