Shares of the drug maker Celator Pharmaceuticals (CPXX) jumped more than 70 percent in Tuesday's trading session after Dublin-based Jazz Pharmaceuticals said it would acquire the company for $1.5 billion. Jazz will pay $30.25 for each share of New Jersey-based Celator, nearly double its Friday close. Jazz is looking to expand its product portfolio to include VYXEOS, Celator's treatment of a rare form of leukemia. Jazz plans to acquire Celator through a tender offer and a so-called second-step merger. The purchase is expected to close in the third quarter this year, and owners of more than 18 percent of the target's stock have already agreed to the bid. By the end of September, VYXEOS, Celator's leukemia treatment is expected to be submitted for U.S. regulatory approval. Celator is also Real Money's James Deporre's 'stock of the week,' and he expects the company's gains to help lift the broader biopharm industry this week. TheStreet's James Passeri has details from Wall Street.
This article was written by a staff member of TheStreet.