Jazz Pharmaceuticals acquires Celator Pharmaceuticals (2016)
Jazz Pharmaceuticals paid $1.5 billion to acquire Celator and its lead drug Vyxeos, a reformulated chemotherapy combination for acute myeloid leukemia that had received breakthrough therapy and orphan drug designations from the FDA. The drug had not yet been approved at the time of the acquisition.
Vyxeos won FDA approval in August 2017 and became a standard of care for certain forms of acute myeloid leukemia.
The deal demonstrated that acquiring companies with FDA-designated rare cancer drugs before peak commercialization could yield outsized returns, as orphan drug exclusivity and limited competition protect revenue.
Like Celator, Day One had an FDA-approved product with orphan drug status and breakthrough designation in a narrow cancer indication. Both deals reflect the premium acquirers will pay for drugs that serve small but underserved patient populations with strong regulatory protections.