NEW YORK (TheStreet) -- Celgene (CELG) shares are up 0.63% to $115.65 in early market trading after the company entered into a 10 year $1 billion drug development deal with Juno Therapeutics (JUNO) today.
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.
Juno shares are up 0.73% to $115.64.
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.
TheStreet Ratings team rates CELGENE CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation: