NEW YORK (Reuters) - U.S. biotech pharmaceutical firm Celgene Corp said on Sunday that it had agreed to acquire Impact Biomedicines for as much as $7 billion (£5.1 billion), subject to certain milestones associated with regulatory hurdles and sales performance.
Celgene is interested in Impact Biomedicines’ fedratinib, a kinase inhibitor that has shown promise as a potential treatment for a type of blood cancer called myelofibrosis, according to a statement put out jointly by both companies.
“Myelofibrosis is a disease with high unmet medical need as the number of patients who are ineligible for or become resistant to existing therapy continues to increase,” said Nadim Ahmed, Celgene’s president of hematology and oncology.
“(Fedratinib) provides strategic options for us to build leadership in this disease.”
The deal is structured in three parts, with Celgene paying $1.1 billion in cash upfront for the San Diego-based company.
Celgene will pay an additional $1.4 billion, depending on the receipt of U.S. Food and Drug Administration milestone approvals.
Finally, Celgene will make payments depending on sales, with a maximum of $4.5 billion due if annual net sales of Impact’s treatments exceed $5 billion.
Celgene is a bio-technology company based in Summit, New Jersey, that specializes in treatments for multiple myeloma.
Reporting by Elizabeth Dilts; Editing by Lisa Shumaker and Rosalba O'Brien