The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Cephalon-Ception’s Canadian Connection: Great News for Lumira Capital and McMaster in $250 million Option Deal

At the beginning of 2009, when Ception Therapeutics was working on mid-stage trials of its lead compound, it struck an option deal with Cephalon (NASDAQ: CEPH): $100 million up-front, and an option to acquire the rest of Ception for $250 million more. 

This week, Cephalon exercised the option after taking a look at Phase II results for Cinquil (reslizumab), a novel biologic that could potentially be used to treat asthma and Pediatric Eosinophilic Esophagitis. 

Among many other beneficiaries, foremost among them hopefully being patients, this deal is great news for Canadian-based VC firm Lumira Capital*, which co-led the deal, and for McMaster University, which did some of the clinical work on the drug. 

According to FierceBiotech, the $350 million paid so far is not the end of the story either, as Ception shareholders will benefit from future clinical and regulatory milestones.

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* occasional contributors to this publication.

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