Cephalon to acquire BioAssets Development Corporation

Cephalon is to acquire spinal treatment specialist BioAssets Development Corporation (BDC) in a transaction that is expected to close by next month.

The company has chosen to exercise its option to purchase BDC based on positive data from a phase II study of a tumour necrosis factor (TNF) inhibitor for the treatment of sciatica.

Under the terms of the deal, Cephalon will take control of the rights to this drug and a number of other cytokine inhibitors, which are intended for use among patients with intervertebral disk herniation and other spinal disorders who are suffering from sciatic pain.

Cephalon believes that BDC's drugs represent a promising new non-surgical treatment option for those affected by back problems.

Dr Lesley Russell, chief medical officer for Cephalon, said: "With this acquisition, Cephalon combines BDC's intellectual property and scientific expertise regarding TNF inhibitors with our own pipeline."

In August 2010, it was announced that Cephalon's chairman and chief executive officer Dr Frank Baldino Jr has taken a medical leave of absence, with his responsibilities being temporarily filled by chief operating officer J Kevin Buchi.