Pharmacopeia and Cephalon forge drug discovery pact

The primary objective of the alliance is to identify active molecules and bring them forward to clinical proof of concept, yielding novel candidates for drug development in various therapeutic areas.

Under the terms of the agreement, Cephalon will be responsible for identifying promising compounds. The companies will then work collaboratively to advance the lead compounds to clinical candidates. Pharmacopeia will be principally responsible for medicinal chemistry and primary biology, while Cephalon will provide further biology support as required by the collaboration.

Upon nomination, if any, of clinical candidates, Cephalon will be primarily responsible for their development and commercialization. Pharmacopeia retains an option to develop candidates from the collaboration, subject to Cephalon's agreement.

The financial terms of the agreement call for Cephalon to pay Pharmacopeia an up-front program access fee of $15 million.

In addition, for each clinical candidate advanced under the collaboration, the developing company will make clinical, regulatory and sales milestone payments to the non-developing company. Further, the company commercializing each resulting product will pay the non-commercializing company up to double-digit royalties based on the sales level achieved.