Cephalon puts in offer for Arana Therapeutics
Cephalon International Holdings, a division of US biotechnology company Cephalon, is to acquire Arana Therapeutics, an Australian biopharmaceutical company.
Cephalon International Holdings, a division of US biotechnology company Cephalon, is to acquire Arana Therapeutics, an Australian biopharmaceutical company.
Arana has a pipeline of biologic compounds for inflammatory diseases and cancer at various stages of discovery and development.
The AUD318m (Euro 160m) offer has the support of Arana's directors and will be recommended to shareholders in the absence of a superior proposal.
"Cephalon is offering Arana shareholders the opportunity to de-risk their investment portfolios by taking cash for their shares at a time when cash provides certainty and stability," said Kevin Buchi, chief financial officer at Cephalon. "We are better equipped to take Arana's lead compound, ART621, through clinical development and, pending the success of clinical trials, to international markets."
To support its bid, Cephalon has acquired a 20% shareholding in Arana from the company's two largest shareholders, Australia Ventures Pty and Rockwell Securities.
ART621 is a tumour necrosis factor (TNF) alpha blocker in development for patients with inflammatory diseases, currently in Phase II trials for both psoriasis and rheumatoid arthritis.