Celgene Corp to acquire Signal Pharmaceuticals for $196 million

Celgene Corp has entered into an agreement to acquire SignalPharmaceuticals, the privately-owned San Diego, California, USA-based biopharmaceutical company which focuses on intracellular signaling and gene and protein regulation. Under the terms of the agreement, a stock-for-stock merger valued at around $196 million, Celgene will issue just under 3.7 million shares in exchange for all the outstanding stock of Signal.

Celgene says that the transaction is expected to be "slightly dilutive" in 2001 and neutral to earnings the year after. The company also noted that if the deal is not concluded, the merger agreement includes a clause which obliges Signal to grant Celgene options to purchase additional shares and pay a termination fee of up to $10 million.

"Excellent strategic fit"