Celgene, Mesoblast $45M Deal "Speaks Volumes" About Big Pharma's Cell Therapy Plans, Says Pluristem Therapeutics
April 14, 2015
By Riley McDermid, BioSpace.com Breaking News Sr. Editor
Australian regenerative medicine company Mesoblast Limited’s $45 million deal with Celgene Corporation is a key step in recognizing emerging cell therapy and will help other Big Pharma firms find new strategies to expand their pipelines, Karine Kleinhaus, Pluristem Therapeutics ’s divisional vice president for North-America, told BioSpace Tuesday.
“The recognition of the value of the emerging cell therapy space that is communicated by this deal is very positive for all of us in the space,” Kleinhaus told BioSpace.
“With hundreds of clinical trials in progress around the globe, data from completed studies, robust partnering interest in the space, and new favorable regulatory pathways there is a good reason to believe that cell therapy will be the next wave of biological products,” she said. “A success in the space is good for everyone, and we are happy about what this deal means for the space.”
Mesoblast had a heyday Monday after Summit, New Jersey-based Celgene Corporation (CELG) said it will invest $45 million in the company--sending Mesoblast’s share price skyrocketing to its highest point in almost a decade, up 24 percent in Sydney trading.
Celgene’s offer is also a 19 percent premium from Mesoblast’s closing price on April 10, a windfall that has company stakeholders enthralled. That partnership could be one of the biggest takeaways from this deal, said Kleinhaus.
“Celgene, like Big Pharma, has been partnering with earlier-stage or smaller biotechs to broaden its pipeline. This has been an important type of R&D strategy for many pharma companies,” said Kleinhaus, who is also a medical doctor. “With this deal a leading biotech company is entering into allogeneic cell therapy space, and this move by a leading biotech suggests the recognition that cell therapy is emerging as the newest generation of biological product.”
Under the terms of the deal, Celgene will make the payment to acquire a minority position in the company, getting 15.3 million shares in return. Celgene will also gain at six-month right of first refusal on Mesoblast’s stem-cell product candidates for conditions including inflammatory bowel disease and certain cancer indications. Celgene’s willingness to look abroad for every possible bolt-on possibility says a lot about today’s global market, said Kleinhaus.
“It speaks volumes about the space when a big biotech makes a substantial investment into the space,” she told BioSpace. “We enjoyed this validation in our partnerships with United Therapeutics Corporation and CHA Biotech, and other players have engaged in partnerships as well.”
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