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Celator Surges 70% After Acquisition Announcement By Jazz Pharmaceuticals

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Celator Surges 70% After Acquisition Announcement By Jazz Pharmaceuticals

Shares of Celator Pharmaceuticals Inc (NASDAQ: CPXX) surged higher by more than 70 percent early Tuesday morning after the company has agreed to be acquired by Jazz Pharmaceuticals plc (NASDAQ: JAZZ) for approximately $1.5 billion, or $30.25 per share.

Celator's stock closed for trading at $17.53 on Friday.

Jazz Pharmaceuticals stated the acquisition of Celator is "well-suited" to advance its growth strategy. Specifically, the company cited Celator's VYXEOS therapy which is the first product candidate to demonstrate a statistically significant improvement in Overall Survival in patients with high-risk AML. The product has already received U.S. Food and Drug Administration (FDA) Breakthrough Therapy designation and Orphan Drug designation by the FDA and European Commission.

Jazz Pharmaceuticals expects the deal to close in the third quarter of 2016 and be accretive to its Non-GAAP adjusted earnings per share in 2018 and beyond.

"Celator Pharmaceuticals is a strong strategic fit with Jazz Pharmaceuticals. VYXEOS will further diversify our product portfolio and is complementary to our clinical and commercial expertise in hematology/oncology," said Bruce Cozadd, chairman and chief executive officer of Jazz Pharmaceuticals plc. "As Celator is currently preparing a regulatory submission in the U.S. for VYXEOS, this acquisition would add a new orphan product with the potential for short- and long-term revenue generation and expansion of our international commercial platform."

"The planned combination of Jazz and Celator is highly complementary, as both companies are dedicated to bringing differentiated therapies to patients who have high unmet medical needs," said Scott Jackson, chief executive officer of Celator Pharmaceuticals. "We believe that Jazz Pharmaceuticals' clinical and commercial expertise in hematology/oncology and existing international infrastructure will help realize the value of VYXEOS as a treatment to patients with AML. After thoroughly evaluating our strategic options, our board of directors has unanimously determined that this all-cash transaction is in the best interest of our stockholders."

 

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