Juno And Celgene Announce Partnership To Create Immunotherapy Drugs; AH, One Stock Zooms
Shares of Juno Therapeutics (JUNO) are up 38% in after-hours trade after the company announced a 10-year strategic partnership with Celgene (CELG) for immunotherapies for cancer and auto-immune diseases. Celgene is making an initial payment to Juno of $1 billion dollars. The $150 million dollars will be payed in cash and the rest will be Celgene buying 9,1 million shares of Juno's common stock at $93 per share.
Celgene even has the option to buy additional shares over time and increase its stake if it chooses to do so. Juno will have the option to develop its immunotherapy programs in the United states, but Celgene will have the ability to develop and commercialize them throughout the rest of the world. It will pay Juno royalties on these sales for territories outside of the U.S.
Juno will have the option to co-develop and co-promote certain Celgene programs as well. Shares of Celgene are down 1.44% after hours after announcing this collaboration. Celgene and Juno will not work to produce many different types of immunotherapies for many different types of cancer and auto-immune diseases.
Disclosure: None.