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26 Oct 2010

Abraxis deal done, Celgene eyes cancer franchise

Celgene has wrapped up its $3 billion-plus buyout of Abraxis BioScience.

Now that Celgene has wrapped up its $3 billion-plus buyout of Abraxis BioScience, analysts are cheering. That wasn't necessarily the case in June, when the companies announced their deal--and investors responded by selling off their stock, sending the price plummeting to $48. But as Investor's Business Daily reports, Celgene shares are now trading at near $60, and observers think the combo will eventually transform the company into a "biopharmaceutical giant."

Celgene specializes in drugs for blood cancers, with its Revlimid drug leading the company's roster. Abraxis, on the other hand, sports a promising drug for solid tumors, Abraxane. Analysts think that Celgene can beef up Abraxane sales significantly, because it already fields a cancer-drug sales force. Up to $500 million from $315 million last year, one analyst predicts.

But even more importantly, Abraxane has the potential to be a "platform drug" used to treat several forms of cancer. Now approved for brea

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