WILMINGTON, Del. — Pharmion Corp., the maker of the Vidaza blood-cancer treatment, was sued Wed nesday by a stockholder who contends he’ll be shortchanged in a planned $2.9 billion acquisition by Celgene Corp.
Celgene, of Summit, N.J., said Sunday it would buy Pharmion for $72 per share in cash and stock, a 46 percent premium at the time. Investor Arthur Murphy sued in Delaware Chancery Court seeking more money for the stock.
The transaction “undervalues the company’s true worth,” allowing Celgene “to capitalize on Pharmion’s promising pharmaceutical products” to treat blood and solid-tumor cancers, according to the lawsuit, which asks a judge to block the deal.
Boulder-based Pharmion, with a $91 million net loss on $238.6 million in sales last year, makes Vidaza to treat early signs of leukemia, a type of blood cancer. Third-quarter U.S. sales of the drug were $33 million.
Celgene, with $898.8 million in 2006 sales, makes thalidomide-based drugs for blood cancers. Its Revlimid medicine is a derivative of thalidomide, once banned because it caused birth defects.
Pharmion spokeswoman Breanna Burkart didn’t immediately return a call seeking comment on the lawsuit. Celgene spokesman Brian Gill declined to comment.
Pharmion shares rose 40 cents to $65.14 in Nasdaq Stock Market trading Wed nesday. Celgene fell $2.02 to $62.54.
