Pharmacopeia Partners With Cephalon
Tuesday May 23, 9:14 am ET Pharmacopeia to Form Drug-Discovery Partnership With Cephalon

PRINCETON, N.J. (AP) -- Pharmacopeia Inc., which provides services to pharmaceutical and biotechnology companies, on Tuesday said it will form a drug-discovery partnership with biopharmaceutical company Cephalon Inc. for an up-front fee of $15 million.

Under terms of the deal, Cephalon will be responsible for identifying promising compounds. Both companies will then work to develop the compounds into clinical candidates. Pharmacopeia will be responsible for medicinal chemistry and primary biology, while Cephalon will provide biology support as needed.

Cephalon will then be responsible for the development and commercialization of clinical candidates, while Pharmacopeia will retain an option to develop candidates from the collaboration.

The company developing a clinical candidate that goes forward will then make clinical, regulatory and sales milestone payments to the non-developing company. Further, the company commercializing each resulting product will pay the other company up to double-digit royalties based on sales.