Business

Acetylon draws Celgene investment, possible buyout

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Acetylon Pharmaceuticals of Boston, developer of small molecule drugs for multiple myeloma and other cancers, plans to announce Monday a $100 million investment by biotech giant Celgene Corp. that could lead to a $1.1 billion acquisition.

Acetylon, whose founders are affiliated with the Dana-Farber Cancer Institute, Harvard Medical School and Massachusetts General Hospital, plans to use some of the money to fund continuing development of its leading drug candidate, ACY-1215, which targets myeloma. Three other cancer treatments also are in the works. In exchange for the investment, Celgene will receive an exclusive option to buy Acetylon for between $500 million and $1.1 billion, depending on future milestones. The new investment follows a $15 million equity stake Celgene took in Acetylon in 2012.

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