CEPHALON ANNOUNCES $45 MILLION R&D PARTNERSHIP
CEPHALON ANNOUNCES $45 MILLION R&D PARTNERSHIP WEST CHESTER, Pa., Aug. 12 /PRNewswire/ -- Cephalon, Inc.
(NASDAQ: CEPH) announced today the closing of a $45 million private placement of limited partnership interests in Cephalon Clinical Partners, L.P. The partnership will use the net proceeds of the offering to fund an agreement with Cephalon for the development and clinical testing of Myotrophin(TM). Myotrophin is being developed to treat amyotrophic lateral sclerosis (ALS), also known as Lou Gehrig's disease, and certain peripheral neuropathies. Cephalon will have exclusive rights to market Myotrophin in the United States, Canada and Europe subject to the partnership's rights to receive certain payments and a portion of any future Myotrophin revenues. Cephalon will retain the right to pursue independently the development and marketing of Myotrophin in Japan and other countries.
A total of 900 units were sold in the private placement, with each unit including a limited partnership interest in Cephalon Clinical Partners, a series A warrant to purchase 3,700 shares of Cephalon common stock and a series B warrant to purchase 800 shares of Cephalon common stock. The series A warrants are exercisable from Sept. 1, 1993 to Aug. 31, 1997 at an exercise price of $11.32 per share and from Sept. 1, 1997 to Aug. 31, 1999 at $13.82 per share. The initial exercise price of the series A warrants is twenty-five percent above the average NASDAQ closing price of Cephalon common stock for the forty trading day period ending Aug. 3, 1992. The series B warrants are exercisable from Sept. 1, 1997 to Aug. 31, 1999. The exercise price of the series B warrants will be twenty-five percent above the average NASDAQ closing price of Cephalon common stock for the sixty trading day period ending July 22, 1994. "The successful closing of this partnership offering is a significant milestone for Cephalon. The funds available through the partnership for Myotrophin, together with Cephalon's cash and investment balances, provides Cephalon with access to nearly $100 million for drug development programs," indicated Dr. Frank Baldino, Jr., president and CEO of Cephalon, Inc. "The partnership will fund Myotrophin clinical trials, while allowing Cephalon to devote its resources to fund the development of its broad portfolio of therapeutic compounds." Cephalon, Inc. focuses on the development of products to treat neurodegenerative diseases. These diseases are characterized by the death of neurons, the specialized conducting cells of the nervous system. The company has concentrated its research programs on the prevention of neuronal death in several disorders, including ALS, Alzheimer's disease, head and spinal cord injuries, stroke, peripheral neuropathy and retinopathy. Backgrounder on amyotrophic lateral sclerosis and peripheral neuropathy: The nervous system is responsible for controlling motor, sensory and cognitive functions. These functions are mediated by a complex network of specialized conducting cells called neurons. Neurons are unique in that they lose their capacity for cell division early in development, cannot regenerate and are irreplaceable. Cephalon has demonstrated in preclinical trials that Myotrophin(TM), a recombinant form of human insulin-like growth factor-1, promotes the survival of neurons. Cephalon plans to focus initially on developing Myotrophin to treat the disease conditions of ALS, chemotherapy-induced peripheral neuropathy and the peripheral neuropathy observed in Charcot-Marie-Tooth Syndrome. Amyotrophic Lateral Sclerosis (ALS): -- A fatal disorder of the nervous system characterized by the chronic, progressive degeneration of motor neurons which results in muscle atrophy and loss of muscle function. -- The disease progresses over a three to five year period, with death typically resulting from loss of respiratory muscle control rendering the patient unable to breathe. -- ALS affects 25,000 to 30,000 people in the United States. -- Currently, there is no effective therapy. Peripheral Neuropathy: -- Peripheral Neuropathy is a collection of disorders of the peripheral nervous system (PNS) characterized by a degeneration of peripheral motor and sensory nerves. -- Peripheral neuropathy is caused by several factors including inducement by therapeutic agents, genetic abnormalities, and other disease conditions. -- In the most severe cases, peripheral neuropathy can result in constant pain and lead to significant limitations in normal physical activity. -- Peripheral neuropathy, in the most severe cases, affects approximately half a million people in the United States. -- Current therapies for peripheral neuropathy are inadequate. Therapeutic Inducement: -- Cancer chemotherapeutic agents such as vinca alkaloids and cisplatin are used to treat over half a million cancer patients, of these approximately 100,000 experience peripheral neuropathy. -- AIDS therapeutic treatments have caused peripheral neuropathy in an estimated 40,000 patients. Genetic Abnormalities: -- Charcot-Marie-Tooth Syndrome (CMT syndrome) the most common in+herited neuropathy affecting 125,000 people in the United States. -- Other inherited neuropathies include Refsum's Disease, Tangier Disease, Krabbe's Disease, and Fabry's Disease. These are very rare diseases which in aggregate affect approximately 5,000 people. Disease Conditions: -- Type II Diabetes (non-insulin dependent) the most common disease related condition which causes peripheral neuropathy in approximately 600,000 people in the United States. -- Other diseases that may cause peripheral neuropathy are Post- polio Syndrome, Friedreich's Ataxia and Guillian-Barre Syndrome which in aggregate affect over 85,000. -0- 8/12/92 /CONTACT: Nicole Vitullo, director of corporate communications of Cephalon, Inc, 215-344-0200, or Karen Bergman of Burns McClellan, 212-545-1919, for Cephalon, Inc./ (CEPH) CO: Cephalon, Inc. ST: Pennsylvania IN: MTC SU:
TM-LD -- NY004 -- 9216 08/12/92 08:01 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Aug 12, 1992|
|Previous Article:||TRANSNET ANNOUNCES PROFIT AND RECORD REVENUES IN YEAR END RESULTS|
|Next Article:||HERBALIFE INTERNATIONAL WILL OPEN NEW ASIAN MARKET IN HONG KONG|