Cephalon, ChemGenex Pharmaceuticals deal

Cephalon will acquire the 72.4% of cancer company ChemGenex it does not already own for about A$159 million ($163 million) in cash. The deal, which comprises A$0.70 per share and A$0.02 per option, values ChemGenex at about A$225 million ($231.8 million). The price is a 59% premium to ChemGenex's close of A$0.44 on March 24, before trading was halted. ChemGenex's board unanimously recommends the offer. Prior to the bid, Cephalon exercised notes and call options to acquire 27.6% of ChemGenex shares. Cephalon purchased the notes and options in October (see BioCentury, Oct. 25, 2010).

Cephalon said the deal adds a late-stage asset to its cancer portfolio, which includes Treanda bendamustine for chronic lymphocytic leukemia (CLL) and indolent B cell non-Hodgkin's lymphoma (NHL). ChemGenex plans to submit regulatory applications in the U.S. and Europe next half for Omapro omacetaxine to treat chronic myelogenous leukemia (CML) patients who have failed therapy with two or more tyrosine kinase inhibitors. BofA Merrill Lynch advised Cephalon, while Canaccord Genuity advised ChemGenex. ...