(Reuters) - Ireland-based Jazz Pharmaceuticals Plc (O:JAZZ) is nearing a deal to buy Celator Pharmaceuticals Inc (O:CPXX) for about $1.5 billion (1 billion pounds), the Wall Street Journal reported.
The deal is likely to be announced on Tuesday, the Journal said citing people familiar with the matter. (http://on.wsj.com/24hvsYO)
Jazz is expected to shell out about double Celator's market value of about $740 million - a huge premium even in biotechnology, where acquirers often pay up for promising new treatments, the Journal said.
About three months ago, Celator said its Vyxeos treatment helped older high-risk patients with a deadly form of leukemia live longer than those who received the standard of care regimen in a late stage clinical trial, sending its stock price soaring.
In 2013 Jazz acquired Gentium SpA, an Italian maker of drugs to treat rare diseases, for about $1 billion. (http://reut.rs/1WuiJmg)
Representatives of Jazz and Celator Pharma were not immediately available for comment.