Cephalon says Arana takeover would bolster pipeline

Cephalon’s proposed takeover of Arana Therapeutics would boost the group’s oncology and inflammatory disease pipeline if completed, the company said this week.

It announced that wholly-owned subsidiary Cephalon International Holdings, intends to offer a per-share cash price of A$1.40, valuing the total deal at A$318 million.

Chairman and chief executive officer Frank Baldino Jr said Arana’s established technology platform in the field of protein engineering is one of the reasons why the takeover would be beneficial.

Chief financial officer Kevin Buchi added: “We are better equipped to take Arana’s lead compound, ART621, through clinical development and, pending the success of clinical trials, to international markets.”

The acquisition of a shareholding in the company has been confirmed by Cephalon to support its bid. It now owns approximately 19.9 per cent of Aran’s entire issued share capital.

News of the takeover follows the buyer’s description of last year as a “fantastic” one. Mr Baldino Jr said the core business remained strong and continued to grow during this time.