The SmallCap Network issued a report wherein talked about the recent agreement between Celgene Corporation (NASDAQ:CELG) and Juno Therapeutics Inc (NASDAQ:JUNO), and also stated that similar deal can happen between Pharmacyte Biotech Inc (OTCMKTS:PMCB) and some other entity. The firm expects that the M&A trend that is going within the biotech industry mark Pharmacyte as the next potential acquisition target of bigger firms.
In June, Celgene paid $1 billion to biotech developer firm Juno Therapeutics for a 10% stake in the firm. As a part of the deal, it will be entitled to receive a part of revenue that Juno’s CAR-T cancer treatment might generate, if and when it is approved. The SmallCap Network stated the deal as a big bet for Celgene because as of now CAR-T therapy is in Phase I clinical study and Juno has little else in its product pipeline.
The message here is that Celgene interest in innovative cancer drugs under development and a willingness to invest in it is not surprising for the investors, market or company’s peers. In last two years, the pharmaceutical industry has witnessed several mergers and acquisitions, and many of them are completed in order to introduce new cancer drugs and therapies in the market. In light of the recent Celgene deal, one of the biotech entities that top the list of potential acquisition targets is Pharmacyte.
Pharmacyte is developing innovative treatments for fatal diseases including cancer and diabetes. The treatments are based on a unique platform technology termed as ‘Cell-in-a-Box®.’ It can be defined as a encapsulation technology that is formed of genetically modified live cells.
In last trading session, the stock price of Pharmacyte declined more than 2% to close the trading session at $0.117. The decline came at a share volume of 1.46 million compared to monthly average share volume of 2.36 million.