By Tess Stynes
Celgene Corp. (CELG) agreed to acquire 1.1 million shares of
Acceleron Pharma Inc. (XLRN) from selling shareholders for about
$47 million, which will raise the biopharmaceutical giant's stake
in the small-drug developer to 14.8%, according to a regulatory
filing.
Acceleron shares rose 16% to $39.36 in early trading. The stock
has more than doubled from its September initial public offering
price of $15.
Celgene is Acceleron's collaboration partner on two
investigational treatments for cancer and other diseases. According
to Acceleron's website, the company has received $75 million from
Celgene in upfront payments from the two programs and is eligible
to receive up to a combined $567 million in milestone payments.
Since early 2011, nearly a dozen young biotechs such as
Acceleron have soared to valuations of $1 billion or more thanks to
skyrocketing share prices -- even though almost none of the
high-flyers even has a commercial product yet.
Public-market investors, having witnessed the growth of top
biotechs such as Celgene, have been searching for the next great
drug developer and are attracted to the promise of these young
companies' experimental drugs.
Meanwhile, major drugmakers have been searching for new drugs to
replace sales from treatments that have lost market exclusivity. In
addition to their own research efforts, big drug companies have
been entering collaborations and partnerships, as well as making
acquisitions of smaller companies with promising drug
pipelines.
Celgene owned nearly 3.5 million, or 11.29% of Acceleron's stock
as of Jan. 28, according to FactSet Research.
The selling holders are Advanced Technology Ventures, Flagship
Ventures, Polaris Venture Partners, Venrock, and Alkermes Inc., all
of whom invested in the Acceleron before its IPO.
Write to Tess Stynes at tess.stynes@wsj.com
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