Cephalon signs world's biggest stem cell deal with Australia’s Mesoblast

US biopharmaceutical company Cephalon, the world's 10th largest pharma company, yesterday announced a $2-billion deal with Australia's stem cell research company Mesoblast Ltd, to bring adult stem cell therapies in the global market, flagging to what would be the world's biggest deal in the emerging stem cell sector.

The announcement of the largest biotech deal this year in the Australian biotechnology sector, sent the stock price of the Melbourne-based stem cell company surging by 21.6 per cent to A$4.05 at close yesterday, the highest since Mesoblast listed on the Australian Stock Exchange in December 2004.

Mesoblast is a world leader in commercialising biologic products for a broad field of regenerative medicine including developing novel treatments for orthopaedic conditions, and the commercialisation of unique adult stem cells to regenerate and repair bone and cartilage.

Having completed its acquisition of US-based Angioblast Systems Inc in September 2010, Mesoblast holds the worldwide exclusive rights for a series of patents and technologies developed over more than 10 years relating to the identification, extraction, culture and uses of adult Mesenchymal Precursor Cells (MPCs).

Angioblast is developing the platform for MPC technology for the treatment of cardiovascular diseases, including repair and regeneration of blood vessels and heart muscle.
The acquisition catapulted Mesoblast to Australia's fourth largest biotech company and the world's biggest dedicated stem cell company. It also enhanced its market capitalisation to around A$750 million.

Under the deal Pennsylvania-based Cephalon will buy a 19.99-per cent stake in Mesoblast for $223 million at $4.35 a share, a premium of 45 per cent to Mesoblast's closing price on 7 December 2010.