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AstraZeneca Buys Fortress-Biotech Founded Caelum For $500M

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AstraZeneca Buys Fortress-Biotech Founded Caelum For $500M
  • AstraZeneca Plc (NASDAQ: AZN) will take complete control of Caelum Biosciences in a deal worth up to $500 million, sharpening its focus on rare-disease drugs following its purchase of Alexion Pharmaceuticals.
  • Caelum was founded by Fortress Biotech Inc (NASDAQ: FBIO).
  • Caelum will become part of AstraZeneca's Alexion division, the rare diseases specialist it bought for $39 billion earlier this year.
  • Alexion will pay $150 million to buy the remaining stake it does not already own in Caelum and make future payments of up to $350 million, depending on milestones achieved. Alexion took a minority stake in Caelum in 2019.
  • Fortress is eligible to receive approximately 43% of all proceeds from the transaction.
  • Caelum's lead drug candidate aims to treat AL amyloidosis, a rare, life-threatening disease that damages the heart and kidneys.
  • The disease causes abnormal proteins called amyloids to build up in human organs and disrupt their normal function. 
  • Caelum's drug is a monoclonal antibody that binds to amyloid deposits to reduce or remove them and improve organ function.
  • Price Action: FBIO stock is up 10.6% at $3.76, and AZN stock is up 2.19% at $58.89 during the premarket session on the last check Wednesday.
 

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