Buying the Pharm(ion)

Celgene Corp. hopes its acquisition of the 95% of Pharmion Corp. it didn't already own for $2.9 billion in cash and stock will broaden its position in the hematology/oncology space by providing it with rights to a number of marketed products, including Vidaza azacitidine and thalidomide, boost its commercial operations in the U.S. and Europe, and enhance its late-stage pipeline with multiple cancer products in or on the cusp of Phase III testing.

Sol Barer, CELG's chairman and CEO, said on a conference call that the primary driver of the deal was Vidaza, which has been marketed in the U.S. since 2004 to treat myelodysplastic syndromes (MDS). The drug recently received a shot in the arm thanks to Phase III data showing that the hypomethylating agent produced a two-year survival rate of 50.8% versus 26.2% for conventional care regimens (see BioCentury, Aug. 6). ...