AstraZeneca Buys Fortress-Biotech Founded Caelum For $500M

AstraZeneca Plc AZN will take complete control of Caelum Biosciences in a deal worth up to $500 million, sharpening its focus on rare-disease drugs following its purchase of Alexion Pharmaceuticals.
Caelum was founded by Fortress Biotech Inc FBIO.
Caelum will become part of AstraZeneca's Alexion division, the rare diseases specialist it bought for $39 billion earlier this year.
Alexion will pay $150 million to buy the remaining stake it does not already own in Caelum and make future payments of up to $350 million, depending on milestones achieved. Alexion took a minority stake in Caelum in 2019.
Fortress is eligible to receive approximately 43% of all proceeds from the transaction.
Caelum's lead drug candidate aims to treat AL amyloidosis, a rare, life-threatening disease that damages the heart and kidneys.
The disease causes abnormal proteins called amyloids to build up in human organs and disrupt their normal function.
Caelum's drug is a monoclonal antibody that binds to amyloid deposits to reduce or remove them and improve organ function.
Price Action: FBIO stock is up 10.6% at $3.76, and AZN stock is up 2.19% at $58.89 during the premarket session on the last check Wednesday.