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Celgene Corporation (NASDAQ:CELG) to buy Cancer research Company Quanticel Pharmaceuticals

Celgene Corporation (NASDAQ:CELG) is buying up Quanticel Pharmaceuticals for a deal worth $485 million. The deal comes after Clegene teamed up with Versant Ventures to help Quanticel get off the ground

Quanticel is a cancer focused biotech and has a drug recover engine that uses single cell genomic analysis to decode cancer cells and highlight the weak points. The work of the Quanticel is based on the works of Stanford professors Michael Clarke and Stephen Quake The Company has till date spent eighteen months refining its technology. The company got an allowance of $45 million from Celgene for its research.

Under the deal, Celgene will give Quanticel $100 million and will promise another $385 million if the deal goes according to the plan. Celgene hopes to use Quanticel’s cancer characterization technology to develop new treatments and accelerate the development of some treatments in the pipeline. Quanticel also has its own stable of treatments and Celgene hopes to get some of those into clinic.

Celegene has been making deals at a breakneck speed. The deal with Quanticelsomes after the $450 million collaboration with AstraZeneca plc (ADR) (NYSE:AZN) and $1billion deal with SutroBiopharma. There is also an on-going partnership with Agios Pharmaceuticals Inc (NASDAQ:AGIO).

Celgene follows the top down model of finding the most promising research and then using its check book to bring it in. Quaticel with its novel platform fits the bill. In a statement, Tom Daniel, Research and Early Development President said that the deal will help validate an innovative approach to building organizational capabilities.

Quanticel is one of those companies that partner with VC firm to start up and then get acquired by a larger company down the line. Versant has long been a pioneer among build to buy investors. It has struck deals with Roche Holding Ltd. (ADR) (OTCMKTS:RHHBY) and Eli Lilly and Co (NYSE:LLY) to create start ups born for acquisition down the line.

Published by Donna Fago

I believe in writing content Informing investors with the knowledge they need to invest better today- I have been following the markets for many years and was asked to join the team at WallStreetPR.com recently due to my passion for the markets.

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