Cephalon, Mesoblast deal

The companies partnered to develop and commercialize products derived from Mesoblast's adult Mesenchymal Precursor Stem Cell (MPC) technology. Mesoblast will receive $130 million up front and is eligible for development and regulatory milestones of up to $1.7 billion, plus royalties. Additionally, Cephalon will make an equity investment of about $220 million in Mesoblast through the purchase of a 19.99% stake in Mesoblast at A$4.35 per share. The price is a 31% premium to Mesoblast's close of A$3.33 on Dec. 3, the last trading day before the deal was announced. Mesoblast gained the technology through its acquisition of Angioblast Systems Inc. this year (see BioCentury, May 17). ...