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Cephalon Exercises Option to License Worldwide Rights to ImmuPharma Product, Lupuzor
Date:2/2/2009

FRAZER, Pa., Feb. 2 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) today announced that the company will exercise its option to license worldwide rights to Lupuzor(TM), an investigational medication for the treatment of Systemic Lupus Erythematosus, based on the promising interim results of the ImmuPharma Phase IIb study. Cephalon will assume all expenses for Phase III studies, regulatory filings and subsequent commercialization of the product.

ImmuPharma PLC received a $15 million upfront fee at the initiation of the deal last year. In exercising its option, Cephalon will pay ImmuPharma a one-time license fee of $30 million. ImmuPharma could receive future cash milestone payments upon the achievement of certain regulatory and sales milestones, as well as royalties on commercial sales of Lupuzor. The various cash milestone payments (including the option and license fees) may total up to approximately $500 million.

"We are pleased that this Phase IIb study shows a favorable efficacy and safety profile for Lupuzor," said Dr. Lesley Russell, Executive Vice President and Chief Medical Officer at Cephalon. "We will initiate plans to implement pivotal Phase III clinical trials this year."

"These study results are encouraging and bring us one step closer to providing the first specific medication for the treatment of lupus to patients living with this chronic, potentially life-threatening disease," said Frank Baldino, Jr., Ph.D., chairman and CEO of Cephalon. "Lupuzor recently received a notice of allowance for its novel composition of matter patent, which will support our development of the product. If our efforts are successful, this product and our recent deal with Ception Therapeutics will allow us to build a business unit focused on i
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SOURCE Cephalon, Inc.
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