Mesoblast (MSB) was the day’s hot stock yesterday with the shares leaping more than 24% after it became known that US global biotech, Celgene has picked up a 4.7% stake in the Australian company and was looking for closer co-operation.
Celgene will buy 15.3 million MSB shares at a cost of $58.5 million, or $3.82 a share.
The shares proceeded to jump 24.3% or 78c to $3.99, after peaking at a day’s high of $4.07
The deal will also secures potential access to prospective treatments in a range of disease field with Celgene having a six-month right of first refusal to Mesoblast’s mesenchymal lineage adult-stem-cell product candidates for the prevention and treatment of acute graft versus host disease, certain oncologic diseases, inflammatory bowel diseases and organ transplant rejection.
Celgene, which focuses on the development of therapies for the treatment of cancer and immune-inflammatory related diseases, said the deal will bolster its pipeline of cellular and regenerative medicines.
MSB 1Y – Celgene secures stake in Mesoblast
Mesoblast CEO Silviu Itescu said the company was pleased to have a global leader in development and commercialisation of innovative therapies for oncologic and immune-mediated diseases such as Celegene on board.
“We look forward to working closely together and building a strong and fruitful relationship,” Mr Itescu said in yesterday’s statement.
Celgene president and chief operating officer Mark Alles said the deal provided an opportunity for the group to add to its leading cellular and regenerative medicine pipeline.
“We are committed to developing important new therapies for significant medical diseases that are currently not being adequately addressed,” he said in the statement.
