Celgene (CELG) has joined the M&A craze at the start of 2018 with the purchase of privately-held Impact Biomedicines. The deal is structured in a savvy way and boosts the pipeline of Celgene.
The deal announcement comes alongside the release of preliminary results for Q4, accompanied by a solid outlook for 2018. A modest valuation, full pipeline and strong financial position make that I am adding on the latest dip in the share price.
The Deal
Celgene has acquired Impact Biomedicines in a deal which involves a $1.1 billion upfront cash payment. With the deal Celgene is making a bet on drug candidate fedratinib which might be used to treat myelofibrosis and polycythemia vera.
