Wednesday’s pre-market trading saw biopharmaceutical company Fortress Biotech (NASDAQ: FBIO) rally 12.06% after the multinational pharmaceutical giant AstraZeneca expressed interest in acquiring Caelum Biosciences.
Thriving in the consistent development, acquisition, and recognising of potential in advanced biopharmaceutical products – Fortress Biotech has caught the eye of AstraZeneca's Alexion. More specifically, its recent venture with Caelum and the development of CAEL-101.
Formed in 2017 under Fortress, Caelum is a clinical-stage biotech company focusing on the particular development of treatments for life-threatening diseases. In 2019, AstraZeneca's Alexion Pharmaceuticals entered a collaboration with Caelum for the design and development of CAEL-101; a powerful monoclonal antibody targeting patients with AL amyloidosis.
Following significant progress of CAEL-101, the acquisition appears as the next logical step in its development – allowing Alexion to utilise the full extent of its resources to expedite the process.
CEO and President of Fortress Biotech Lindsay A Rosenwald recognises the importance of such a development for the company’s shareholders: “The acquisition of Caelum is a positive development and monetization opportunity for our shareholders, while validating the Fortress business model”
Further to the closing of the acquisition on October 5, 2021, Alexion will obtain the remainder of Caelum’s outstanding shares for the option exercise price of $150 million – to which allocations will be made to the company’s shareholders. Fortress is expected to gain roughly 43% of all transactional revenue.
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Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.