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Celldex Buys Cancer Drug Co. for $62M Stock (CLDX)

Awardee Story Celldex Buys Cancer Drug Co. for $62M Stock (CLDX)
Date: Nov 02, 2016
Author: Shobhit Seth
Source: Yahoo Finance ( click here to go to the source)

Celldex Therapeutics Inc. (CLDX) agreed to acquire Kolltan Pharmaceuticals Inc., a New Haven, Connecticut-based clinical-stage company that makes cancer drugs, for $62.5 million in stock.

Celldex could make additional payments of up to $172.5 million if Kolltan's experimental drugs perform well in clinical studies. The acquisition is scheduled to close by year-end.

Celldex is hoping to diversify its cancer drug portfolio after its brain cancer vaccine, called rindopepimut, failed a Phase 3 trial in March 2016.

Kolltan develops antibody-based drugs targeting receptor tyrosine kinases (RTKs). Celldex believes it can capitalize on the synergy between its drugs and Kolltan's, either independently or in combination.

"We believe this acquisition complements our leadership position in immuno-oncology and enhances our ability to develop targeted therapeutic regimens to dramatically improve patient outcomes," said Celldex CEO Anthony Marucci.

Deal Expands Celldex Drug Portfolio to 7
Kolltan's cancer drugs KTN0158, which is in a Phase 1 study to treat refractory gastrointestinal stromal tumors.

Kolltan's other cancer drug, KTN3379, is in Phase 1b trial to treat head and neck squamous cell carcinoma and in BRAF-mutant non-small cell lung cancer.

Celldex will have seven drug candidates after the merger.

Celldex, of Hampton, New Jersey-based, has a strong pipeline of drugs that are in different clinical phases. However, recent delays in pivotal trials have marred the company's recent stock performance. (For more, see Celldex Therapeutics Remains a Guessing Game.)

Celldex stock traded at $3.15 per share, up 3 cents, mid-afternoon ET on November 2.

Read more: Celldex to Acquire Kolltan in $235M Deal (CLDX) | Investopedia http://www.investopedia.com/news/celldex-acquire-kolltan-235m-deal-cldx/#ixzz4OxnAwuiQ
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