Pipeline match following Celgene's $2.9bn acquisition of Pharmion

That amounts to €1.98bn, which is $72 (€49.1) per Pharmion share, which is a hefty mark-up on its Friday closing price of $49.28.

However, analysts seem to agree that the two company's drugs will sit well with each other and Celgene has got its money's worth.

A large part of Celgene's oncology franchise consists of thalidomide and derivatives of that molecule, such as Revlimid (lenalidomide).

These are approved to treat multiple myeloma (MM) and myelodysplastic syndromes (MDS).

With this latter group of conditions, the bone marrow typically produces more blood cells than normal, yet they are defective, leading to lower numbers in circulation.

In some cases, this can lead to acute myeloid leukaemia (AML).

Although Celgene has four immunomodulatory drugs, dubbed 'IMiDs', in its pipeline, they treat MDS, not AML.

This is where Pharmion comes in, with its drug called Vidaza (azacitidine).

The injection form of the drug is already approved to treat MDS, but crucially, is also in Phase II trials for AML.

An oral form is also in Phase I clinical trials for both diseases (see table below).

"It's a great move for Celgene," Michael King, an analyst with Rodman & Renshaw, told Bloomberg.

"Vidaza has the potential to be a billion-dollar product."

He went on to explain that Celgene probably plan to use Revlimid for less advanced MDS and then switch patients to Vidaza after they develop resistance.

Pharmion has also previously said it expects to submit a Market Authorization Application (MAA) in Europe for Vidaza in higher-risk MDS before the end of the year.

Both US companies also have thalidomide drugs approved.

In fact, Pharmion licensed it from Celgene for development and commercialisation in Europe and other selected countries.

"The combination of our two product portfolios and organisations represents the opportunity to create a leading global haematology/oncology company," said Patrick Mahaffy, CEO of Pharmion.

Pharmion Celgene Name Mechanism Indication Name Mechanism Indication Thalidomide oral immuno- modulatory and anti-angiogenic agent Relapsed / refractory MM (Approved)

1st

Line MM (Phase III) Other cancers (Phase II)

Thalomid (thalidomide) immuno- modulatory and anti-angiogenic agent MM and Erythema Nodosum Leprosum (ENL) (Approved) Revlimid (lenalidomide) Actimid/CC-4047 (pomalidomide) CC-11006 CC-10015 'IMiDs'

-Four in pipeline: thalidomide derivative thalidomide derivative Unknown, but thought to have similar mechanism to other IMiDs MM and MDS (Approved) Phase II Phase I preclinical Viadaza (azacitidine)

DNA methyl- transferase inhibitor (DMTI) Injection Oral DMTI MDS (approved) AML (Phase II) Solid tumours (Phase II)

MDS / AML (Phase I) Alkeran (melphalan), licensed from GlaxoSmithKline alkylating agent MM Orplatna (satraplatin) Oral platinum drug - in collaboration with GPC Biotech.

Development plans being re-evaluated 2nd Line HRPC

(Phase III, failed)

With radiotherapy or chemo agents in solid tumours (Phase II)

With select chemo agents in advanced solid tumours (Phase I) MCGD0103 oral, isotype-selective histone deacetylase (HDAC) inhibitor Solid tumours with gemcitabine (Phase I) Haematologic malignancies (Phase II) With Vidaza in MDS/AML or lymphoma (Phase II) Amrubicin third-generation synthetic anthracycline 2nd Line monotherapy in SCLC (Phase III)

1st Line SCLC (Phase II) Breast cancer (preclinical)

JNK 401 Plus JNK 359 JNK 930 c-Jun N-terminal Kinase (JNK) Inhibitors Cancer / Inflammatory (Phase II) Ischemia / Reperfusion (Phase I) fibrotic disease (preclinical) respectively Unnamed as yet but 38 potential targets small molecule modulators of potential proprietary E3 Ubiquitin ligases Various cancers (preclinical) CC-8490 CC-113 Benzopyranes Cancer (Phase II)

Cancer (Preclinical) Other, non oncology indications with no overlap between companies Innohep (tinzaparin sodium injection)

Once-daily low molecular weight heparin medication Acute symptomatic deep vein thrombosis (DVT) (Approved) Ritalin (d,l-thero-methyl- phenidate) Plus, refined formulation of Ritalin, called Focalin (dexmethyl- phenidate) - contains only the effective d-isomer.

Both with licensee Novartis. attention deficit hyperactivity disorder (ADHD) Refludan (lepirudin) Heparin-induced thrombo- cytopenia type II and thromboembolic disease - an infrequent but potentially life-threatening response to heparin therapy.

(Approved) CC-10004 (apremilast)

CC-11050 inhibits the production of multiple proinflammatory mediators including interleukin-2 (IL-2), IL-12, interferon-gamma, TNF-alpha, leukotrienes, and nitric oxide synthase.

oral TNF antagonist and anti-inflammatory agent Psoriasis (Phase II)

Psoriasis (Phase I)