Pharma BD Deal Intelligence

Cephalon Inc. / Mesoblast Limited

2010 · Licensing/Option · $2.0B · Complete

WRONG BY 64 POINTS

Cephalon's $2B stem-cell bet evaporated: Teva inherited it via the 2011 buyout, walked away in 2016 after funding Phase 3, and the flagship asset (Revascor) still isn't FDA-approved 15 years later.

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The coverage arc

Dec 07, 2010 Cephalon, Inc. / SEC Form 8-K Exhibit 99.1(a) Bullish

Cephalon and Mesoblast enter into strategic alliance; in exchange for exclusive worldwide rights, Cephalon will make an upfront payment totaling US$130 million…

Dec 08, 2010 Genetic Engineering & Biotechnology News Bullish

GEN noted Cephalon's $350M immediate commitment ($130M upfront + $220M equity) signaled 'genuine confidence rather than transactional collaboration' and gave…

Jun 14, 2016 Fierce Biotech Bearish

Teva (which inherited the rights via its Cephalon acquisition) returned the experimental stem cell heart therapy to Mesoblast, exiting the program; Mesoblast…

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Cephalon and Mesoblast strategic alliance: $130M upfront + up to $1.7B regulatory milestones for exclusive worldwide rights to MPC therapeutics in CV/CNS. Cephalon also took 19.99% equity stake. Largest licensing deal of 2010.

Did it work? Outcome assessment

Cephalon's $2B stem-cell bet evaporated: Teva inherited it via the 2011 buyout, walked away in 2016 after funding Phase 3, and the flagship asset (Revascor) still isn't FDA-approved 15 years later.

Strategic verdict
Failed to Achieve

Key facts

Related deals — scored

DealYearValueOutcome
Cephalon Inc. / Mesoblast Limited (this deal)2010$2.0B19
Cephalon Inc. / Laboratoire L. Lafon S.A. (Group Lafon)2000$450M89
Cephalon Inc. / Salmedix, Inc.2005$160M89
Cephalon Inc. / Group Lafon (France)2001$450M80
Cephalon Inc. / Cell Therapeutics, Inc.2005$70M74
Cephalon Inc. / Anesta Corp.2001$444M65
Cephalon Inc. / Anesta Corp.2000$444M64

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