Exhibit 99.1
Contact: Sandra Menta Hans Henrik Munch-Jensen
Cephalon, Inc. H. Lundbeck A/S
610-738-6376 011-45-3630-1311
FOR IMMEDIATE RELEASE
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Cephalon Announces R&D Collaboration with Lundbeck
to Develop Products for Neurodegenerative Diseases
- Target Diseases include Parkinson's Disease and Alzheimer's Disease -
West Chester, PA -- June 1, 1999 -- Cephalon, Inc. (NASDAQ: CEPH)
announced today that it has entered into a collaborative agreement with H.
Lundbeck A/S to discover, develop and market products to treat neurodegenerative
diseases, such as Parkinson's disease and Alzheimer's disease.
The collaboration will focus on the development of receptor tyrosine
kinase (RTK) inhibitors, a novel class of orally active, small molecules which
inhibit specific kinases associated with the death of neurons. In preclinical
studies, these molecules have been shown to promote neuronal survival in animal
models of Parkinson's disease and Alzheimer's disease. Initially, the program
will seek to advance Cephalon's lead molecule, CEP-1347, into clinical
development for the treatment of Parkinson's disease.
"Cephalon's technology represents a significant advance in the development
of compounds to treat neurodegenerative diseases," stated Dr. Claus Braestrup,
Lundbeck's executive vice president, research and development. "This
collaboration enhances our research and development pipeline and complements our
efforts to provide new and innovative pharmaceuticals to treat diseases of the
central nervous system."
Under the terms of this agreement, Cephalon is to receive from Lundbeck
approximately $40 million, which includes an upfront license fee, research and
milestone payments, and an equity investment of 1 million shares of Cephalon
Common Stock at a price of $12.00 per share, which is the average market price
for the five trading days prior to closing. Lundbeck will support research and
share the costs of developing CEP-1347 and any other molecules that emerge from
the research program. Lundbeck will obtain Cephalon's commercial rights in
Europe and certain other territories, and will pay Cephalon a royalty on sales
in those territories. Cephalon will retain exclusive rights in the United
States. Kyowa Hakko Kogyo Co. Ltd. remains Cephalon's partner for CEP-1347 in
the rest of the world.
"A key component to our strategy is to commercialize products in the U.S.
market, and to form alliances with pharmaceutical companies that have
significant experience in commercializing products in other markets of the
world," stated Frank Baldino, Jr., Ph.D., Cephalon's president and chief
executive officer. "We are pleased to co-develop these novel compounds for the
neurology market with Lundbeck, a well-established organization whose
development and marketing capabilities makes it one of the world's leading
companies in the treatment of psychiatric and neurological diseases."
A New Approach to Neurodegenerative Diseases
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In Alzheimer's and Parkinson's diseases, as in other neurodegenerative
disorders, the underlying pathology is a profound and irreplaceable neuronal
death. Such neuronal loss is critically influenced by activation of the stress-
activated protein (SAP) kinase pathway. CEP-1347 and Cephalon's RTK inhibitors
selectively and potently inhibit key kinases within the SAP kinase pathway,
thereby blocking cell death in neurons. In preclinical models of
neurodegenerative diseases, these molecules enhance neuronal survival, support
normal neurological function, and represent the first orally active molecules
that have the potential to halt the progression of these devastating disorders.
"Cephalon's highly selective kinase inhibitors represent a novel approach
to treating neurodegenerative disorders," stated Thomas N. Chase, Ph.D., Chief
of Experimental Therapeutics, National Institute of Neurological Disorders and
Stroke. "Available therapies today are limited to symptomatic relief. If
effective in man, Cephalon's molecules could become the first therapy to modify
the course of these debilitating diseases."
Parkinson's disease is a progressive disorder of the central nervous system
caused by the degeneration of the pigmented neurons in the Substantia Nigra of
the brain, resulting in decreased dopamine availability. Clinically, the
disease is characterized by a decrease in spontaneous movements, gait
difficulty, postural instability, rigidity and tremor. Over one million people
in the United States are afflicted with Parkinson's disease.
Alzheimer's disease is an intractable, chronic, and progressively
incapacitating disease characterized by the presence of core neuritic plaques,
neurofibrillary tangles and gliosis in the brain which is believed to result in
the observed death of several types of neurons. Patients affected with this
disease become severely demented. Over four million Americans are afflicted
with Alzheimer's disease, with more than 100,000 new cases diagnosed each year.
The age-dependent nature of these neurodegenerative diseases suggests that
an increasing percentage of the population may be affected as the population
ages.
Lundbeck is one of the leading providers of drugs for the treatment of
diseases in the central nervous system. The company deploys significant
resources into research and development, and markets its highly specialized
products in 70 countries. Total revenue reached DKK 3.2 billion in 1998. The
Lundbeck Group has 3,000 employees, half of which is domiciled in Denmark. The
Group offers attractive working conditions, and human resource policies stresses
respect for the individual and her/his contribution to the success of the
Company. The Lundbeck Group (www.lundbeck.com) is headquartered at Ottiliavej
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9, DK-2500 Valby, Copenhagen, Denmark, +45 3630 1311.
Cephalon, Inc., headquartered in West Chester, PA, is an international
biopharmaceutical company dedicated to the discovery, development and marketing
of products to treat neurological disorders, sleep disorders and cancer.
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press release may contain forward-looking statements. Forward-looking statements
provide our current expectations or forecasts of future events. These may
include statements regarding anticipated scientific progress on our research
programs, development of potential pharmaceutical products, prospects for
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Litigation Reform Act of 1995.
NOTE: Cephalon's press releases are posted on the Internet at the
company's Web site at http://www.cephalon.com. They are also available by fax
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