Cephalon launches takeover bid for ChemGenex

Cephalon has announced that it is launching a bid to acquire ChemGenex, a biopharmaceutical company specialising in the area of haematology.

The $231 million (144.22 million pounds) bid is being made via the firm's subsidiary Cephalon CXS Holdings and will see Cephalon take control of ChemGenex from its current major shareholders, Stragen International and Merck Sante.

Should the takeover be completed, it would give Cephalon access to ChemGenex's lead investigational candidate Omapro, which recently completed phase III testing as a treatment for chronic myeloid leukaemia.

The bid has already been unanimously approved by the directors of ChemGenex, who will now recommend the deal to shareholders in the absence of a superior offer.

Kevin Buchi, chief executive officer of Cephalon, said: "The proposed transaction allows ChemGenex shareholders to realise cash proceeds at a significant premium to recent trading levels and adds an interesting late-stage opportunity to our portfolio."

This comes after Cephalon announced earlier this month that it will also be entering into a deal to purchase Gemin X, a cancer treatment specialist.