Cephalon Inc. said Tuesday it has exercised its option to acquire Ception Therapeutics Inc. for $250 million, following receipt of positive data from a clinical study of Ception’s lead new drug candidate Cinquil in adults with eosinophilic asthma.
“The acquisition of Ception is consistent with our strategy to diversify into biologics and provides us with an important phase-III asset for further development,” said Frank Baldino Jr., chairman and CEO of Cephalon (NASDAQ:CEPH).
Cephalon of Frazer, Pa., paid $100 million to Ception of Malvern, Pa., in January for an exclusive option to acquire all of the private company’s outstanding stock at a later date based on how well Cinquil advanced through the clinical trial process. Cephalon will now advance the compound into phase-III clinical studies, typically the last step before seeking approval of a new drug candidate.
“Today marks an important milestone for Ception, as well as the asthma community,” said Stephen Tullman, president and CEO, Ception Therapeutics. “These encouraging results will allow the advancement of this novel therapeutic for the many people suffering from this severe, poorly controlled form of asthma.”
Ception shareholders could receive additional payments related to undisclosed clinical and regulatory milestones.