Jazz Pharmaceuticals to buy Celator for $1.5bn

Jazz Pharmaceuticals has agreed to buy Celator Pharmaceuticals for $30.25 per share in cash, or around $1.5bn, which will be financed with a combination of cash on hand and borrowings under its senior secured credit facility.

The deal, which is expected to close in the third quarter, would add Celator’s Vyxeos product – US regulatory submission for which is planned by the end of the third quarter – for the treatment of acute myeloid leukemia to Jazz Pharmaceuticals' portfolio.

Jazz said the transaction is expected to be accretive to non-GAAP adjusted earnings per share beginning in 2018 and beyond.

Bruce Cozadd, chairman and chief executive officer of Jazz, said: “Celator Pharmaceuticals is a strong strategic fit with Jazz Pharmaceuticals. 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 US 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."

Jazz Pharmaceuticals' financial advisor for the transaction is RBC Capital Markets, and its primary legal advisor is Cooley LLP.

Celator shares surged 71% in pre-market trade to $30.02.