Celgene to Buy Cancer-Drug Maker Impact for $1.1 Billion (2)

Celgene Corp.agreed to buy closely held Impact Biomedicines for $1.1 billion upfront to gain an experimental blood cancer treatment. The price could reach as much as $7 billion over time if the drug reaches certain milestones.

Under the agreement, Celgene will add as much as $1.25 billion to the upfront payment if Impact’s drug fedratinib reaches approval milestones to treat myelofibrosis, a form of bone marrow cancer, and another $150 million for other indications. Additional payments could reach as much as $4.5 billion if global annual sales rise above $5 billion, according to a statement Sunday.

The total price would ...