TAP SUB-LICENSES CEPHALON TECH

Cephalon has entered into an agreement with Takeda-Abbott Pharmaceuticals of the USA regarding its receptor tyrosine kinase effector program. TAP will provide Cephalon with $5 million funding in 1994, with subsequent payments to be determined on an annual basis, in return for carrying out preclinical development of the drugs. TAP has also taken a 6.8% stake in the company for $14.4 million.

Cephalon notes that the value of the deal could exceed $50 million, factoring in royalties and milestone payments. TAP will be responsible for carrying out clinical development of candidate RTK effectors, as well as filing New Drug Applications. The company receives US marketing rights to the drugs, while Cephalon retains manufacturing and marketing rights outside the USA. The drugs, originally licensed from Kyowa Hakko Kogyo of Japan, are intended for prostate cancer and prostatic hyperplasia, and so will complement TAP's Lupron Depot (leuprolide acetate) product for the treatment of advanced prostate cancer.