Cephalon pays $30M for option to buy BioAssets

By Mass High Tech staff

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BioAssets Development Corp. of Wellesley reports it has signed an agreement with Cephalon Inc. for an option to be acquired that will bring BioAssets $30 million. If Pennsylvania-based Cephalon (Nasdaq: CEPH) decides to exercise that option, there will be an additional payment upon closing for an unspecified amount.

According to a spokesperson for BioAssets, no decision has been made as to whether or not the company would remain in Wellesley following any option exercise.

Under the deal, BioAssets stockholders could also receive future payments related to regulatory and sales milestones if the purchase option is exercised. The agreement is subject to closing conditions including the receipt of necessary approvals from BioAssets’ stockholders.

BioAssets develops a tumor necrosis factor (TNF) alpha inhibitor that can be used to prevent nerve damage associated with spinal disorders that is currently in Phase 2 trials. The company’s current lineup of inhibitors are already used to treat inflammatory reactions related to rheumatoid arthritis, psoriasis and Crohn’s Disease.

Cephalon could exercise its purchase option within 60 days of BioAssets receiving patient data from its Phase 2 trials, which the company says it expects in early 2010.

In September, BioAssets raised $3.76 million in an equity offering, according to a regulatory filing, from unspecified investors. The company reported receiving $5.4 million in seed financing in July of 2007. The funding was led by Medical Venture Fund of the Texas Back Institute.

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