Takeda to Buy Millennium Pharma

Japan's Takeda Pharmaceutical agreed to acquire cancer-drug maker Millennium Pharmaceuticals (MLNM Quote - Cramer on MLNM - Stock Picks) in a deal worth $8.8 billion.

According to the terms of the pact, Takeda will pay $25 for each of Millennium's shares. That's a premium of more than 50% to the stock's prior close at $16.35.

Millennium, based in Cambridge, Mass., is best known for the cancer drug Velcade. Last year, the company had revenue of approximately $528 million.

The transaction was approved by the boards of both companies.