Celgene Corp. will acquire Pharmion Corp. for $2.9 billion in a move intended to advance Celgene’s strategy to become a global leader in the hematology/oncology field. The transaction brings together Revlimid, Thalomid and Vidaza, products expected to generate multiple global revenue streams for accelerated revenue and earnings growth during the next five years.

“The acquisition of Pharmion is an exceptional strategic fit that will expand our role as a leader in hematology and oncology,” said Sol J. Barer, Ph.D., chairman and chief executive officer of Celgene. “Our combined global infrastructure will leverage the therapeutic and commercial potential of Pharmion’s products, particularly Vidaza, which has the potential to become a major global therapy. By bringing together the talents and resources of both companies, we move closer to our vision of becoming a leading hematology and oncology company in the world, expanding our industry leading programs for safety, access and patient support.”

Pharmion has four products on the market and several in development focused on hematological and solid tumor cancers. Vidaza is approved in the U.S. for myelodysplastic syndromes (MDS) and has demonstrated unprecedented overall survival benefit for higher-risk MDS patients based on a Phase III trial. Pharmion previously reported that its Phase III study demonstrated that Vidaza extended overall survival by 74% as compared to conventional care regimens. Pharmion planned to file an MAA in Europe for Vidaza in higher-risk MDS before the end of the year.

Celgene had licensed its thalidomide product to Pharmion for development and commercialization in Europe and other countries. The product is under review by the EMEA as a therapy in newly diagnosed multiple myeloma, with an action expected in late 2007 to early 2008. Pharmion’s pipeline includes Amrubicin, a third generation synthetic anthracycline, which is in Phase III development for the treatment of small-cell lung cancer (SCLC) under an approved Special Protocol Assessment (SPA). MGCD0103, a selective histone deacetylase (HDAC) inhibitor is being evaluated in Phase II studies in hematological malignancies as well as in solid tumors.

“The combination of our two product portfolios and organizations represents the opportunity to create a leading global hematology/oncology company,” said Patrick J. Mahaffy, president and chief executive officer of Pharmion.