In an deal that has been approved by both boards of the companies, Celgene (CELG) has made an offer to acquire Pharmion (PHRM) for $2.9 billion.
The deal would include cash and stock, and equals $72 a share, almost a 50 percent premium over the Friday close for the company.
Celgene Corp. is a biotechnology company and Pharmion Corp. makes treatments for blood cancer.
The deal still has to be presented to shareholders and regulators for approval before going ahead.
Celgene is attempting the move because of its strategy to become a global player in the blood-cancer drug space. The extraordinary premium offered is a reflection of the strong competitive nature of the business at this time.
Pharmion has several products on the market now, with their best seller being Vidaza, which treats blood-cell disorders. It also has Amrubicin, which treats small-cell lung cancer. They have several more in various stages of development.
The two companies have a working relationship already with Pharmion having the European marketing rights to Thalomid, a thalidomide drug used to treat myeloma, a bone marrow cancer.
Both companies hope to close the deal by the end of the second quarter of 2008.
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