Cephalon to acquire Gemin X Pharmaceuticals

Cephalon has announced that it is to purchase Gemin X Pharmaceuticals, the developer of a number of promising new cancer treatments.

The firms have agreed a $225 million deal (137.28 million pounds) that will see Gemin X become a wholly-owned Cephalon subsidiary, with the transaction expected to close in the second quarter of 2011.

Gemin X's research focuses on methods of reinitiating programmed forms of cell death and inhibiting cancer cell metabolisms.

Its lead compound, obatoclax, is currently undergoing phase IIb testing as a treatment for extensive stage small cell lung cancer among more than 160 patients.

Under the terms of the deal, Gemin X stockholders will also be entitled to additional payments of up to $300 million, based on the achievement of regulatory and commercial milestones.

Kevin Buchi, chief executive officer of Cephalon, said the firm's "array of novel, targeted cancer therapeutics is a welcome addition to our current oncology portfolio".

Earlier this month, the company appointed healthcare veteran Dr Charles Homcy as the newest member of its board of directors.