Celgene Will Acquire Drug Firm Gloucester

Celgene has agreed to pay up to $640 million for Gloucester Pharmaceuticals, a Cambridge, Mass.-based firm that buys clinical-stage cancer drug candidates for further development. The deal expands Celgene’s blood-cancer drug portfolio, which already includes Revlimid for multiple myeloma and Vidaza for myelodysplastic syndromes. Last month, Gloucester’s histone deacetylase inhibitor, Istodax, won FDA approval for use in patients with cutaneous T-cell lymphoma. The companies expect to launch Istodax in early 2010. Glouce­ster’s owners get $340 million in cash and stand to receive an additional $300 million if regulatory milestones are met.