The up-and-coming drugmaker is paying a hefty premium in this cash and stock deal - Celgene is agreeing to pay $72 a share, way above the $49.28 closing price on Friday (interestingly, Pharmion shares closing up nearly 5 percent for the day and continued rising in after-hours trading). But Celgene sought the deal because the move furthers its goal of marketing both oncology and hematology meds.

“The acquisition of Pharmion is an exceptional strategic fit that will expand our role as a leader in hematology and oncology,” says Sol Barer, Celgene’s ceo and chairman, in a statement. “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…”

Pharmion has four products on the market and several in development for hematological and solid tumor cancers. Vidaza, for instance, is approved in the US for myelodysplastic syndromes (MDS), and has shown an 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 percent as compared to conventional care regimens and expects to seek European approval shortly. And Celgene licenses thalidomide to Pharmion to market in Europe, where its under review by the European Medicines Agency (EMEA) for newly diagnosed multiple myeloma. An EMEA action is expected in late 2007 to early 2008.

UPDATE: In an investor note on Monday morning, Michael King of Rodman & Renshaw writes: “A great mix of synergies. In our view, this acquisition makes great strategic sense for Celgene. Recall that Pharmion markets Thalomid in Europe for myeloma and pays Celgene a royalty. This is an ideal target patient population for Revlimid. Furthermore, we would imagine that there a significant amount of cross selling synergies with the transaction in both the US and EU hematology markets.”

You can read a little more about meds being developed and the terms of the deal in the statement.