Anyone with any insight into why Celgene sold the rights, current customer list and product line to Cambrex corporation. The terms were 7.5 MM now and 7.5MM later. Did Celgene need a cash infusion to continue their product pipeline? Anyone with ANY insight?
Celgene sold the rights because this was not their main area of focus & didn't expect this division to produce profits for many years. By selling it, CELG is able to focus on their drug pipeline & other divisions which have a more immediate potential return for the co. By selling this division celgene also reduces losses incurred by this division which should help a drop on the loss per share. The 7.5 Mill probably goes to earnings in 1998, which should make the P&L look better for '98.
I have also heard that approval is expected on Thalidomide shortly. The rumor is probably related to the co. meeting with the FDA within the past 2 weeks