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Cephalon, Inc. Announces Agreement to Acquire AMRIX, A Once-Daily Extended-Release Muscle Relaxant
Date:8/23/2007

FDA Approved Product Will Accelerate Growth of Pain Franchise

FRAZER, Pa., Aug. 23 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) announced today it has signed an agreement to acquire the North American rights to AMRIX(R) (cyclobenzaprine hydrochloride extended-release capsules) from ECR Pharmaceuticals, a privately held company. Two dosage strengths of AMRIX (15 mg and 30 mg) were approved in February 2007 by the U.S. Food and Drug Administration (FDA) for short-term use as an adjunct to rest and physical therapy for relief of muscle spasm associated with acute, painful musculoskeletal conditions. The product is not yet available commercially in the United States; however, Cephalon expects to launch the product early in the fourth quarter.

Under the agreement, which is expected to close on or about August 28, 2007, Cephalon will acquire the rights to AMRIX for $100 million cash. The company also could make future cash payments to ECR upon the achievement of certain cumulative net sales milestones. The company anticipates that the transaction will be modestly dilutive in the fourth quarter due to product launch costs; despite this, the company is reaffirming its existing 2007 sales and adjusted income per common share guidance. The transaction is expected to be accretive in 2008 and thereafter.

"AMRIX is an excellent strategic fit with our current sales organization, providing us with a second product that is complementary to many pain relievers used today," said Robert Roche, Executive Vice President, Worldwide Pharmaceutical Operations. "Cyclobenzaprine HCl is the most widely prescribed muscle relaxant in the United States, representing 37 percent of the 45 million prescriptions for muscle relaxants written in 2006, according to IMS. AMRIX has convenient once-daily dosing and a side effect profile that includes very low rates of sedation which will provide physicians and patients an attractive alternative to current therapies.
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