Novelos buys Cellectar

Struggling oncology therapeutics company Novelos Therapeutics Inc. has purchased privately held Cellectar Inc. (cancer-targeted drugs) in an all-stock transaction. Novelos issued 85% of its outstanding stock (post-acquisition) to Cellectar shareholders, or about 17mm shares after giving effect to a 1 for 153 reverse stock split conducted by Novelos with the closing of the merger. Based on the adjusted ten-day market average prior to the transaction (and considering the stock split), the deal is valued at $44mm.