Cephalon and ImmuPharma Sign a $15 million Option Agreement for Late- Stage Experimental Lupus Medication

Cephalon, Inc. and ImmuPharma PLC has 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™ 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.