Celgene acquires 4.5% stake in Mesoblast

14 April 2015

Australia’s Mesoblast (ASX: MSB) has entered into an Agreement with US biotech firm Celgene (Nasdaq: CELG) whereby the latter will purchase Mesoblast stock and has a six-month right of first refusal to certain disease fields.

Investors welcomed the news, sending shares of Mesoblast up 24% to A$3.99 on Monday.

Under the terms of the deal, Celgene will purchase 15.3 million ordinary shares in Mesoblast for a consideration of A$58.5 million/US$45 million at a price of A$3.82 per share, equal to around a 4.5% stake in the Australian company. In addition, Celgene has a six-month right of first refusal with respect to Mesoblast’s proprietary mesenchymal lineage adult stem cell product candidates for the prevention and treatment of acute graft versus host disease (GVHD), certain oncologic diseases, inflammatory bowel diseases, and organ transplant rejection.

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.

Try before you buy

Free

7 day trial access

Take a Free Trial

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

Subscribe Now

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