Jazz Pharma nears deal to buy Celator for about $1.5 billion - WSJ

(Reuters) - Ireland-based Jazz Pharmaceuticals Plc (JAZZ.O) is nearing a deal to buy Celator Pharmaceuticals Inc (CPXX.O) for about $1.5 billion (1 billion pounds), the Wall Street Journal reported.

The deal is likely to be announced on Tuesday, the Journal said citing people familiar with the matter. (http://on.wsj.com/24hvsYO)

Jazz is expected to shell out about double Celator's market value of about $740 million - a huge premium even in biotechnology, where acquirers often pay up for promising new treatments, the Journal said.

About three months ago, Celator said its Vyxeos treatment helped older high-risk patients with a deadly form of leukemia live longer than those who received the standard of care regimen in a late stage clinical trial, sending its stock price soaring.

In 2013 Jazz acquired Gentium SpA, an Italian maker of drugs to treat rare diseases, for about $1 billion. (http://reut.rs/1WuiJmg)

Representatives of Jazz and Celator Pharma were not immediately available for comment.

(Reporting by Bhanu Pratap in Bengaluru; Editing by Sunil Nair)