Cephalon offers to buy Australian firm

Cephalon Inc. announced today that its wholly owned subsidiary, Cephalon International Holdings, Inc., will make a $207 million offer to take over an Australian biotechnology company.

Cephalon Inc., a drug manufacturer based in Frazer, Chester County, said it would offer 91 cents a share for Arana Therapeutics Limited, which has a pipeline of compounds for inflammatory diseases and cancer at various stages of discovery and development. That represents a 69 percent premium to the closing price on Wednesday.

Arana's board has approved the move, and will recommend it to shareholders, according to a news release by Cephalon, which already has acquired a 19.9 percent ownership stake in the company and expects the offer to be on the table till mid-March.

Cephalon's products focus on four main areas: the central nervous system, inflammatory diseases, pain, and oncology.

Cephalon shares were trading early this afternoon at $66.36, down $1.04 (1.54 percent).