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Cephalon and ImmuPharma Sign a $15 million Option Agreement for Late- Stage Experimental Lupus Medication
Date:11/25/2008

FRAZER, Pa. and LONDON, Nov. 25 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) and ImmuPharma PLC (LSE: IMM), a European pharmaceutical company, today announced that the companies have signed an Option Agreement providing Cephalon with an option to obtain an exclusive, worldwide license to the investigational medication Lupuzor(TM) for the treatment of Systemic Lupus Erythematosus. ImmuPharma is now conducting a large Phase IIb study of Lupuzor in patients in Europe and Latin America.

Under the terms of the option agreement, Cephalon will pay ImmuPharma a $15 million upfront option payment. If the Phase IIb studies are successful and if the option is exercised then the parties enter into an exclusive worldwide license agreement and ImmuPharma will receive a one-time license fee, milestone payments upon the achievement of regulatory milestones and royalties on commercial sales of Lupuzor. The various milestone payments which include sales milestones may total up to $500 million. Upon exercise of the option, Cephalon will assume all expenses for Phase III studies and subsequent commercialization of the product.

"We are excited about entering another specialty market and the potential Lupuzor presents for us to further diversify our product portfolio and to bring 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. "Our current cash position has created the opportunity to make this type of deal, which helps to position Cephalon and our pipeline for longer term growth."

"We are truly delighted to have this agreement with Cephalon and believe they would be a great partner to take Lupuzor forward. It represents an important landmark for the company and secur
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SOURCE Cephalon, Inc.
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