BioCentury
ARTICLE | Company News

BeiGene grants Celgene PD-1 rights, acquires China operations

July 7, 2017 8:21 PM UTC

BeiGene Ltd. (NASDAQ:BGNE) granted Celgene Corp. (NASDAQ:CELG) exclusive rights in most of the world to its PD-1 inhibitor BGB-A317 for non-hematological indications and acquired Celgene's commercial operations in China, including local rights to a handful of marketed therapies.

BeiGene is to receive $263 million in licensing fees and is eligible for up to $980 million in milestones, plus royalties. Celgene will also invest $150 million in BeiGene to obtain a 5.9% equity stake. BeiGene is eligible for low double-digit to mid-twenty percent royalties on sales of BGB-A317. Based on a share price that would value BeiGene's ADSs at $59.55, the deal values BeiGene's equity at a 14% premium to its closing price of $52.27 on July 5, before the deal was announced after market hours...