Pharmion Corp., a Boulder-based drug development company focusing on cancer treatments, will be sold for $2.9 billion to Celgene Corp., the firms announced Sunday.
Under the terms of the merger agreement, Celgene will purchase all the outstanding shares of Pharmion common stock for $72 a share with a combination of cash and shares of Celgene common stock, according to a Pharmion news release posted on its website.
“The acquisition of Pharmion is an exceptional strategic fit that will expand our role as a leader in hematology and oncology,” said Sol J. Barer, chairman and chief executive of Celgene.
Celgene, based in Summit, N.J., is a multinational integrated biopharmaceutical company incorporated in 1986 in Delaware.
Founded in 2000, Pharmion focuses on the treatment of hematology and oncology patients in the United States, Europe and other international markets.
Pharmion employs more than 450 people and has 13 offices worldwide.
Last month, rankings by Deloitte & Touche pegged Pharmion as the second- fastest-growing company in Colorado over the past five years – it grew 4,490 percent.
The transaction has been unanimously approved by the boards of directors of both companies and is subject to customary closing conditions including the approval of Pharmion stockholders and the clearance of antitrust provisions, the news release said.
The two companies expect the sale to close by the end of the second quarter of 2008.
Under the terms of the merger agreement, each share of Pharmion common stock will be exchanged for $25 in cash and shares of Celgene common stock in an amount to be determined.
Pharmion shareholders will own about 6 percent of Celgene shares when the deal closes, the companies said.
Kieran Nicholson: 303-954-1822 or knicholson@denverpost.com
