ImmuPharma shares rise 30% as Cephalon licenses Ph II-stage SLE drug

Shares in UK drug developer ImmuPharma jumped nearly 30% to 56.5 pence on November 25, after US drugmaker Cephalon licensed its mid-stage systemic lupus erythematosus treatment Lupuzor (IPP-201101). ImmuPharma is now conducting a large Phase IIb study of the agent in patients in Europe and Latin America. Under the terms of the option agreement, Cephalon will make ImmuPharma a $15.0-million upfront option payment. If the Phase IIb studies are successful then the firms will enter in a license agreement that will see the UK company receive a one-time fee, potential milestone payments and royalties that could total up to $500.0 million. Upon exercising its option, Cephalon will assume all expenses for Phase III studies and commercialization.