Billion dollar deal turns sour as Crohn's disease candidate fails
Shares in New York-listed Celgene (Nasdaq: CELG) are down a tenth today, following yesterday’s news that the company is to discontinue development of its Crohn's disease candidate GED-0301, or mongersen.
The drug was bought in 2014 from private Irish firm Nogra Pharma at an eye-watering upfront cost of $710 million, with the prospect of up to a billion dollars more following a successful product launch.
Now, the company detailed in an SEC filing that it expects to record a pre-tax write off of up to half a billion dollars, or between 27 and 45 cents per share. Half of that amount is comprised of a cash outlay.
This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.
Login to your accountTry before you buy
Free
7 day trial access
- All the news that moves the needle in pharma and biotech
- Exclusive features, podcasts, interviews, data analyses and commentary from our global network of life sciences reporters.
- Receive The Pharma Letter daily news bulletin, free forever.
Become a subscriber
£820
Or £77 per month
- Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
- Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
- Daily roundup of key events in pharma and biotech.
- Monthly in-depth briefings on Boardroom appointments and M&A news.
- Choose from a cost-effective annual package or a flexible monthly subscription
The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed
Chairman, Sanofi Aventis UK
More on this story...
Today's issue
Company Spotlight
More Features in Biotechnology
Copyright © The Pharma Letter 2024 | Headless Content Management with Blaze