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Cephalon to acquire larazotide acetate assets from Alba Therapeutics

Cephalon has signed an agreement to purchase all assets of larazotide acetate from Maryland-based privately held, clinical-stage bio-pharmaceutical company Alba Therapeutics.

Larazotide acetate, a tight junction modulator, is progressing towards a Phase IIb clinical trial for the treatment of celiac disease.

Cephalon will pay Alba a $7m upfront option payment and will provide a credit facility to fund Alba’s Phase IIb clinical trial expenses for larazotide acetate.

Cephalon may exercise its option at any time prior to the expiration of a specified period after receipt of the final study report for the Phase IIb clinical trial.

If Cephalon exercises its option, the company will purchase Alba’s assets for $15m.

Alba could receive additional payments related to regulatory and sales milestones.

Cephalon CEO Kevin Buchi said Alba will now initiate a Phase IIb trial utilizing a more disease specific primary endpoint.

"If successful, larazotide acetate will add to our pipeline in immunology and has the potential to be the first pharmacologic therapy available to treat patients who endure this often serious condition," Buchi said.