Celgene to buy Abraxis BioScience.
Abraxane was approved to treat metastatic breast cancer in 2005. Its sales last year totaled $315 million, accounting for about 90% of the revenue of Abraxis, which is not yet profitable. Still, the sales of Abraxane have fallen below Wall Street expectations, in part because it is far more expensive than paclitaxel, which is now generic. Celgene, which is one of the most successful biotechnology companies with sales last year of $2.7 billion, said it believed it would be able to increase sales of Abraxane to $1 billion annually by 2015. Abraxis has been testing the drug as a treatment for lung and pancreatic cancer. Primarily because of its drug Revlimid for multiple myeloma, Celgene is already a leader in the market for drugs to treat cancers of the blood. The Abraxis deal would move it into so-called solid tumors like breast cancer and lung cancer. Abraxis shares closed the week up $12.15, or 20%, at $74.25. Celgene fell $5.33, or 10%, to $50.74.
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|Title Annotation:||TOP STORIES|
|Date:||Jul 5, 2010|
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