Cephalon to acquire Alba Therapeutics

Feb 10 2011

Cephalon, Inc. and Alba Therapeutics Corporation, a privately held biopharmaceutical company, today announced that the companies have signed an agreement providing Cephalon with an option to purchase all of Alba's assets relating to larazotide acetate, a tight junction modulator, progressing toward a Phase IIb clinical trial for the treatment of celiac disease. Under the terms of the option agreement, Cephalon will pay Alba a $7 million upfront option payment and will provide a credit facility to fund Alba's Phase IIb clinical trial expenses for larazotide acetate.

Cephalon may exercise its option at any time prior to the expiration of a specified period after receipt of the final study report for the Phase IIb clinical trial. If Cephalon exercises its option, the company will purchase Alba's assets for $15 million.  Alba could receive additional payments related to regulatory and sales milestones.

"We are encouraged by the data that we have evaluated," said Kevin Buchi, Cephalon's CEO. "Alba will now initiate a Phase IIb trial utilizing a more disease specific primary endpoint.  If successful, larazotide acetate will add to our pipeline in immunology and has the potential to be the first pharmacologic therapy available to treat patients who endure this often serious condition."

"Celiac disease affects approximately three million people in the US and 15 million worldwide.  For the past six years Alba has been working diligently to research and develop larazotide acetate, a new oral peptide that has been tested in approximately 450 patients with celiac disease.  We are excited to work with our partner Cephalon.  Their passion and experience goes hand in hand with bringing new medicines to the market for patients who suffer from this disease," said Wendy Perrow, President and COO of Alba Therapeutics.

SOURCE Cephalon, Inc