Jazz Pharmaceuticals has agreed to buy Celator Pharmaceuticals, which makes a treatment for a type of leukemia, for $1.5 billion.

The treatment is called Vyxeos and is being touted as the first product candidate to demonstrate a statistically significant improvement in overall survival in patients with acute myeloid leukemia (AML). U.S. FDA breakthrough therapy designation has been granted for Vyxeos. It has also received orphan drug status from both U.S. FDA and European Commission for the treatment of AML.

Vyxeos is based on Celator’s CombiPlex platform. The deal broadens Jazz Pharmaceuticals’ hematology/oncology portfolio with worldwide development and commercialization rights to Vyxeos. The transaction expected to close in the third quarter of 2016.

“Celator Pharmaceuticals is a strong strategic fit with Jazz Pharmaceuticals. Vyxeos will further diversify our product portfolio and is complementary to our clinical and commercial expertise in hematology/oncology,” said Bruce Cozadd, chairman and chief executive officer, Jazz Pharmaceuticals plc. “As Celator is currently preparing a regulatory submission in the U.S. for Vyxeos, this acquisition would add a new orphan product with the potential for short- and long-term revenue generation and expansion of our international commercial platform.”

“The planned combination of Jazz and Celator is highly complementary, as both companies are dedicated to bringing differentiated therapies to patients who have high unmet medical needs,” said Scott Jackson, chief executive officer, Celator Pharmaceuticals. “We believe that Jazz Pharmaceuticals’ clinical and commercial expertise in hematology/oncology and existing international infrastructure will help realize the value of Vyxeos as a treatment to patients with AML.”