Celgene Gets Global Oomph From Pharmion Deal

Celgene's lead drug, Revlimid, is marketed both here and in Europe as a treatment for multiple myeloma and in the United States for MDS.

By acquiring Pharmion, Celgene will regain worldwide rights to Thalomid and acquire the fast-growing Vidaza. Instead of continuing to build out its own European operations, Celgene will gain immediate access to Pharmion's existing sales force.

And since Revlimid, Thalomid and Vidaza are all blood cancer drugs, Celgene's bolstered sales force will have more drugs to sell to the same doctors, boosting the company's financial leverage.

It remain to be seen how the merger between Celgene and Pharmion impacts Millennium Pharmaceuticals(MLNM Quote), which sells a competing multiple myeloma drug, Velcade, in the United States. Millennium licenses Velcade's European rights to Johnson & Johnson(JNJ Quote).

Pharmion's pipeline includes amrubicin, a drug for small-cell lung cancer that is currently in a phase III trial. The company is also conducting phase II studies for MGCD0103 in various blood and solid tumor cancers.

Celgene hopes to close the Pharmion purchase in the second quarter 2008.