Juno Stock Spikes on 10-Year $1 Billion Drug Development Deal With Celgene

NEW YORK (TheStreet) -- Juno Therapeutics (JUNO) shares are up 23.54% to $57.20 in early market trading on Tuesday after the company signed a $1 billion 10-year drug development deal with Celgene (CELG).

Under the terms of the deal Celgene will pay Juno $150 million in cash and acquire 9.1 million shares of Juno at $93 per share.

Celgene in return has the right to acquire up to a 30% stake in Juno while also garnering a nomination to Juno's board.

The initial focus of the drug development deal will be on a portfolio of Car-T and T-cell receptor technologies.

Separately, Juno also said that it received approval to launch Phase I trials of its non-Hodgkin lymphoma treatment.

Celgene shares are down 0.10% to $114.80 in pre-market trading. 

TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS charitable trust, believes that Celgene paid a lot to have access to Juno's immunotherapy portfolio. Though he acknowledges that the sector is the future of the cancer treatment industry.

"Celgene paid a fortune for this stake making me wonder who else wanted it. That said immunotherapy is the future of the fight against cancer and I think Celgene wanted intel on how it works. High ante to find out," said Cramer.

JUNO Chart JUNO data by YCharts

If you liked this article you might like

Intercept Sinks on Safety Issue, One Analyst Says Buy Anyway - Biotech Movers

FDA OKs BioCryst's Rapivab for Pediatric Indication - Biotech Movers

Biotech Leaders Join Corporate Chorus Angry Over Trump's DACA Move

Juno, bluebird In Focus as Targets Following Gilead-Kite Aquisition

Entry Points Are Tough, and Post-Labor Day Action Is Historically Poor