Celgene To Buy Juno Therapeutics In $9 Bln Deal; Reaffirms 2020 Targets

(RTTNews) - Celgene Corp. (CELG) said Monday that it agreed to buy Juno Therapeutics Inc. (JUNO) for $87 per share in cash or an aggregate of about $9 billion, net of cash and marketable securities acquired and Juno shares already owned by Celgene. In addition, Celgene reaffirmed 2020 financial targets.

In the pre-market trade, JUNO is trading at $86.05, up $18.24 or 26.90%.

The transaction has been approved by the boards of directors of both companies and is subject to customary closing conditions. The transaction is anticipated to close in the first-quarter of 2018.

Celgene said it expects to fund the transaction through a combination of existing cash and new debt. The resulting capital structure will be consistent with Celgene's historical financial strategy and strong investment grade profile providing the financial flexibility to pursue Celgene's strategic priorities and take actions to drive post 2020 growth.

"Juno's advanced cellular immunotherapy portfolio and research capabilities strengthen Celgene's global leadership in hematology and adds new drivers for growth beyond 2020," said Mark J. Alles, Celgene's Chief Executive Officer.

The acquisition is expected to be dilutive to adjusted earnings per share in 2018 by approximately $0.50 and is expected to be incrementally additive to net product sales in 2020.

Celgene reaffirmed 2020 financial targets of total net product sales of $19 billion to $20 billion and adjusted earnings per share greater than $12.50.