Ireland-based Jazz Pharmaceuticals will buy U.S.-based Celator Pharmaceuticals in a cash deal valued at about $1.5 billion, to gain access to an investigational product in development for treating acute myeloid leukemia.
Celator shares soared 71 percent and were up 1609 percent year to date. Jazz's stock was slightly lower.
Jazz Pharmaceuticals will pay $30.25 per share in cash for Celator, a 72.6 percent premium to Celator's closing price on Friday.
In March, Ewing, New Jersey-based Celator said its Vyxeos treatment helped older high-risk patients with a deadly form of leukemia live longer than those who received the standard of care regimen in a late stage clinical trial.
In May, the company said the U.S. Food and Drug Administration had granted breakthrough therapy designation to Vyxeos.