Celgene (Warren, NJ), a developer of chirally pure drugs, agreed on June 30 to purchase gene-regulation firm Signal Pharmaceuticals (San Diego, CA) for $200 million in an all-stock deal. Both companies are working on drugs to treat cancer and inflammation, but Celgene has successfully exploited commercial applications of a pre-existing drug (thalidomide), while Signal has several drugs in the pipeline but none producing revenue. “It's a good match for Celgene,” says Caroline Copithorne, biotechnology analyst at Morgan Stanley Dean Witter (San Francisco), “They haven't had a basic science drug-discovery engine, which is what Signal brings to the table.”
Celgene shares, 3.7 million of which will be issued to Signal's owners, rose $5.37 to $58.87 on the day of the announcement.
Signal, which last year lost $7.9 million on revenues of $11.9 million, had hoped to raise $80.5 million through an initial public offering earlier this year, but decided to withdraw because of the dip in biotech stock prices.
Rights and permissions
About this article
Cite this article
Niiler, E. Celgene buys Signal. Nat Biotechnol 18, 809 (2000). https://doi.org/10.1038/78335
Issue Date:
DOI: https://doi.org/10.1038/78335