Cephalon Agrees to Buy Gemin X Pharmaceuticals for up to US$525 M

Abstract

Cephalon has entered into an agreement to acquire privately held Gemin X Pharmaceuticals for US$225 M upfront and up to an additional US$300 M upon the achievement of certain regulatory and sales milestones. With the acquisition, Cephalon will gain access to Gemin X’s pipeline of targeted cancer drugs, which is led by obatoclax (GX15-070), a pan Bcl-2 inhibitor in a Phase IIb trial for extensive-stage small-cell lung cancer. The acquisition represents another attempt by Cephalon to diversify its pipeline ahead of the entry of generic competition for its blockbuster sleep disorder drug Provigil® (modafinil) in 2012.