Celgene to acquire Abraxis

Celgene Corp. (NASDAQ:CELG) will acquire Abraxis BioScience Inc. (NASDAQ:ABII) in a cash and stock deal that values Abraxis at about $2.9 billion. Abraxis shareholders will receive $58 in cash and 0.2617 of a Celgene share per Abraxis share, which values Abraxis at $71.93 per share based on Tuesday's close -- a 17% premium to Abraxis' Tuesday close of $61.31.

The deal will add breast cancer drug Abraxane nab-paclitaxel to Celgene's oncology portfolio. The albumin stabilized nanoparticle formulation of paclitaxel had 2009 revenues of $314.5 million. Abraxis shareholders are eligible to receive up to $650 million in milestones upon U.S. approval of Abraxane in other indications, plus royalties. ...