Biotech Values

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About that option to buy Ception Therapeutics for its humanized IL-5 Mab - reslizumab:

Cephalon stock drops after mixed drug trial data

http://www.reuters.com/article/marketsNews/idCNN2320024420091123?rpc=44

* Cephalon delays decision on Ception acquisition

* Delay follows mixed results of esophagus drug

* Cephalon shares drop 8.3 pct in premarket trading

By Toni Clarke

BOSTON, Nov 23 (Reuters) - Shares of Cephalon Inc (CEPH.O: Quote, Profile, Research, Stock Buzz) fell more than 8 percent in premarket trading on Monday after a drug for a rare type of inflammation of the esophagus showed mixed results in a clinical trial.

The drug, Cinquil, was developed by privately held Ception Therapeutics Inc, to treat pediatric eosinophilic esophagitis, or EoE. Cephalon paid $100 million to Ception in January for an option to acquire the company and Cinquil, its lead product.

Cephalon had been waiting to see what the results of the mid-to-late stage trial of the drug in EoE showed before deciding whether to exercise its option to acquire all the outstanding stock of Ception for $250 million.

The companies have agreed to extend Cephalon's option exercise period until after results of a mid-stage trial of the drug, which is known generically as reslizumab, in a different condition -- eosinophilic asthma.

Cephalon's shares fell 8.3 percent to $54.66 in premarket trading from a close on Friday of $59.61.

The companies said the study for patients with EoE was designed to evaluate improvement in two co-primary endpoints. The first measured changes in the blood level of a type of white blood cell associated with the disease. The second measured changes in symptoms of the disease.

While there was a statistically significant reduction in white blood cells known as eosinophils in patients taking Cinquil compared to those taking a placebo, there was not a significant improvement in clinical symptoms.

Cephalon said the lack of statistical significance in clinical symptoms was due to the fact that there was also an strong improvement in symptoms in patients taking the placebo.

The study evaluated the drug in 226 children between the age of five and 18. About 80,000 children in the United States have EoE, according to the Journal of Clinical Investigation.

EoE decreases the ability of the esophagus to stretch, making it harder to swallow and absorb solid food.

Symptoms of the disease in children include abdominal pain, nausea, vomiting and a failure to thrive.