April 13, 2015
By Riley McDermid, BioSpace.com Breaking News Sr. Editor
Australian regenerative medicine company Mesoblast Limited is enjoying a heyday Monday, after Summit, New Jersey-based Celgene Corporation said it will invest $45 million in the company--sending Mesoblast’s share price skyrocketing to its highest point in almost a decade, up 24 percent in Sydney trading.
Celgene’s offer is also a 19 percent premium from Mesoblast’s closing price on April 10, a windfall that has company stakeholders enthralled.
Under the terms of the deal, Celgene will make the payment to acquire a minority position in the company, getting 15.3 million shares in return. Celgene will also gain at six-month right of first refusal on Mesoblast’s stem-cell product candidates for conditions including inflammatory bowel disease and certain cancer indications.
“Today’s agreement provides an opportunity for Celgene to add to its leading cellular and regenerative medicine pipeline,” said Celgene‘s President and Chief Operating Officer Mark Alles in a statement. “We are committed to developing important new therapies for significant medical diseases that are currently not being adequately addressed.”
Celgene, the maker of the cancer drug Revlimid, is always looking for bolt-on targets that can bolster its thriving portfolio, and Mesoblast’s focus on allogeneic or ‘off-the-shelf’ cell product candidates that target significantly advanced stages of diseases where there are highly unmet medical needs apparently fit the bill. It main candidates are MPC-150-IM for chronic congestive heart failure, in partnership with Teva Pharmaceutical Industries Ltd. ; MPC-06-ID for chronic discogenic low back pain; MSC-100-IV for acute GVHD; and MPC-300-IV for biologic refractory rheumatoid arthritis and diabetic nephropathy.
Mesoblast‘s Chief Executive Silviu Itescu said in a statement the company was delighted to have such a marquee-name leader in the field take an interest.
“We are pleased that Celgene, as a global leader in development and commercialization of innovative therapies for oncologic and immune-mediated diseases, has chosen to make this investment in Mesoblast,” he said. “We look forward to working closely together and building a strong and fruitful relationship.”
