Celgene to buy Abraxis for $2.9B in biotech deal

[June 30, 2010]  NEW YORK (AP) -- Biotechnology company Celgene says it is expanding its array of cancer treatments by buying Abraxis BioScience for $2.9 billion in cash and stock.

The maker of Revlimid and Vidaza says shareholders of Abraxis will receive $58 and 0.2617 shares of Celgene for each Abraxis share they own. That values Abraxis at $71.93 per share, a 17-percent above its Tuesday closing price.

Abraxis Bioscience Inc. is based in Los Angeles and it makes the injectable cancer drug Abraxane. Abraxane is approved as a treatment for breast cancer and is being tested against skin and pancreatic cancer. If Abraxane is approved for those other uses, the value of the deal could rise by as much as $3.55 billion.

Celgene Corp., of Summit, N.J., says the deal should close in the fourth quarter.

[Associated Press]

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