Celgene Corporation is a biopharmaceutical company that provides intensive care to patients with cancer and immune-inflammatory related diseases (Annual report on form 10-k, 2). On March 7, 2012, Celgene acquired Avila Therapeutics Inc to enhance treatment options for future patients with life threatening diseases. Avila is a clinical-stage biotechnology company focused on the design and development of targeted covalent drugs (Annual report on form 10-k, 103). As a result of this business combination, Celgene was able to absorb Avila as a subsidiary and become the parent company. Following the acquisition, Avila Therapeutics Inc was renamed Celgene Avilomics Research (Annual report on form 10-k, 103). By purchasing Avila, Celgene
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This is the total fair value of considerations transferred. The contingent consideration payments were accounted as liabilities measured in fair value (Annual report on form 10-k, 104). Avila Therapeutics were given milestones. If completed, they would be given an estimated payout of $595 million as a contingent consideration (Annual report on form 10-k, 104). However, if they were not completed, they would be offered zero compensation. The milestones that Avila needed to complete consisted of the success of evolution and administration of the CC-292 drug. This would include the commencement of phase two and phase three of the drug (Annual report on form 10-k, …show more content…
They both have similar goals and can help benefit one another. By acquiring their voting stock, Celgene can control the decisions made by Avila. They would be in full control of the production of the CC-292 drug. The acquisition method would ensure that both companies will stay in existence while they try to create ways to treat cancer and immune inflammatory disease patients. The acquisition allocations to assets and liabilities assumed are always recorded at fair value. Contingent consideration is recorded as a liability at fair value. On the other hand, in-process research and development is recorded as an intangible asset. As one can see, Celgene attempts to create better treatments for patients with cancer and life threatening
This is the total fair value of considerations transferred. The contingent consideration payments were accounted as liabilities measured in fair value (Annual report on form 10-k, 104). Avila Therapeutics were given milestones. If completed, they would be given an estimated payout of $595 million as a contingent consideration (Annual report on form 10-k, 104). However, if they were not completed, they would be offered zero compensation. The milestones that Avila needed to complete consisted of the success of evolution and administration of the CC-292 drug. This would include the commencement of phase two and phase three of the drug (Annual report on form 10-k, …show more content…
They both have similar goals and can help benefit one another. By acquiring their voting stock, Celgene can control the decisions made by Avila. They would be in full control of the production of the CC-292 drug. The acquisition method would ensure that both companies will stay in existence while they try to create ways to treat cancer and immune inflammatory disease patients. The acquisition allocations to assets and liabilities assumed are always recorded at fair value. Contingent consideration is recorded as a liability at fair value. On the other hand, in-process research and development is recorded as an intangible asset. As one can see, Celgene attempts to create better treatments for patients with cancer and life threatening