Celator Pharmaceuticals, Inc. (CPXX) Takes off on Takeover Bid
Shares of Ewing, New Jersey, based Celator Pharmaceuticals, Inc. (CPXX) rose on Tuesday, against the backdrop of a mixed day in stocks overall. Celetor's stock was up 71.59%, rising $12.55 per share, to close at $30.08, on volume of 38,250,460 shares. The powerful run up in the company's stock price was the result of a Monday announcement that Celator is being acquired by Jazz Pharmaceuticals in an all-cash transaction.
Late Monday, it was announced that Celator would be purchased by Jazz Pharmaceuticals Plc (JAZZ) for $1.5 billion in cash, causing Celator's stock price to take off. The two companies announced that they have entered into a definitive agreement for Jazz Pharmaceuticals to acquire Celator for $30.25 per share in cash. The transaction is expected to close in the third quarter of 2016.
The prize for Jazz is Celator's VYXEOS, an investigational product in development as a treatment for Acute Myeloid Leukemia (AML). U.S. regulatory submission for VYXEOS is planned by the end of third quarter 2016 (see link below), or approximately the same time that the Celator/Jazz merger takes place.
Jazz Pharmaceuticals stock closed down 53 cents per share on the news of the buyout, down 0.35% to close at $151.56 per share, on volume 1,346,371 shares. Founded in 2012 and headquartered in Dublin, Ireland, Jazz Pharmaceuticals Plc operates as a specialty biopharmaceutical company, focused on the identification, development and commercialization of pharmaceutical products. The company has a diverse portfolio of products in the areas of narcolepsy, oncology, pain and psychiatry.
Celator management also announced after the market close on Tuesday that it is canceling its Analyst and Investor meeting scheduled for Saturday, June 4, 2016 at 7:00 p.m. Central Time, and that the company's board of directors has postponed its annual meeting of stockholders, originally scheduled for June 8, 2016.
"Celator Pharmaceuticals is a strong strategic fit with Jazz Pharmaceuticals," said Jazz Pharmaceuticals plc chairman and chief executive officer, Bruce Cozadd. "VYXEOS will further diversify our product portfolio and is complementary to our clinical and commercial expertise in hematology/oncology...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."
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