Cephalon to provide funding for ChemGenex cancer research

Cephalon has agreed a deal that will see the company provide funding for cancer research conducted by the oncology specialist ChemGenex Pharmaceuticals.

The agreement will see Cephalon offer AU $15 million (9.5 million pounds) to support development of omacetaxine, a new treatment for chronic myelogenous leukaemia (CML) sufferers.

This treatment is designed for patients who have failed two or more tyrosine kinase inhibitors and is currently being prepared by ChemGenex for submission for international regulatory approval.

In addition to this, Cephalon has confirmed a deal with ChemGenex shareholders Stragen International and Merck Sante for an option to acquire a stake of up to 19.9 percent in the business.

Kevin Buchi, chief operating officer at Cephalon, said: "Our deal with ChemGenex allows us to provide the necessary resources to support the completion of a clinical and regulatory pathway for omacetaxine for CML patients facing a critical unmet medical need."

This comes in the same month that Cephalon agreed to purchase BioAssets Development Corporation, a firm that specialises in spinal therapy options.