CPXX Investors Laughing All The Way To The Bank...

(RTTNews) - Celator Pharmaceuticals Inc. (CPXX) is all set to be acquired by Jazz Pharmaceuticals plc. (JAZZ) for $30.25 per share in cash, or approximately $1.5 billion. The offer price represents a premium of approximately 73% to the closing price of CPXX on May 27, 2016.

The lead product candidate of Celator is VYXEOS for the treatment of patients with high-risk (secondary) acute myeloid leukemia (AML). In a phase III trial, the results of which were reported on March 14, 2016, VYXEOS demonstrated statistically significant improvement in overall survival and induction response rate in high-risk AML patients. The encouraging results sent the stock soaring as much as 440% that day.

The New Drug Application for VYXEOS is expected to be filed with the FDA later this year and a Marketing Authorization Application is anticipated to be submitted with the European Medicines Agency in the first quarter of 2017.

Jazz Pharmaceuticals is optimistic that Celator Pharmaceuticals makes a strong strategic fit as VYXEOS will further diversify its product portfolio and be complementary to its clinical and commercial expertise in hematology/oncology.

The transaction is expected to close in the third quarter of 2016.

We alerted our Premium subscribers regarding CPXX through a report titled "Working Towards The Right Mix..." when it was priced around $2.11. Had you bought the stock then and continued to hold it, you would have made a gain of about 1,300% based on the price it is being acquired.