Washington Editor

An announcement that CeNeS Pharmaceuticals plc was in discussions about a possible takeover sent shares soaring 52 percent in London trading Wednesday.

CeNeS' stock (LSE:CEN) rose 20.24 pence Wednesday, to close at 59.24 pence.

The Cambridge, UK-based firm, which develops drugs to treat postoperative and neuropathic pain, said it was unable to provide details and would make an announcement in "due course."

Nomura Code Securities Ltd. is acting as CeNeS' financial adviser, while JM Finn Capital Markets remains the company's nominated adviser and broker.

CeNeS' lead product M6G (morphine-6-glucuronide) is in Phase III development as a treatment for postoperative pain.

The firm, which received approval in April 2007 of its investigational new drug application for M6G, said in December that it had completed the studies requested by the FDA to support a Phase III program of the product in the U.S.

The company said it expected to make an announcement in 2008 about a licensing deal for M6G.

CeNeS' investigational cancer pain therapy CNS 5161 currently is being evaluated in a Phase II dose-escalation study in Europe.

The product is being developed under a 2006 partnership with Frankfurt, Germany-based Ergomed Group.

CeNeS' pipeline also includes CNS 7056, a short-acting sedative that is in preclinical development.

The firm in August granted the Japanese development and commercialization rights to the product to Osaka, Japan-based Ono Pharmaceutical Co. Ltd.

Under the deal, CeNeS is eligible to receive undisclosed milestone payments based on certain achievements and royalties on sales in Japan.

The companies also plan to develop CNS 7056 as an anesthesia product.

CeNeS plans to start a Phase I study of CNS 7056 in the U.S. in the first half of this year, and Ono expects to start a Phase I study of the product in Japan by the second half of 2008.

Preclinical data showed that CNS 7056 induces deep sedation, has a rapid onset and offset of actions with predictable effects over a wide range of doses.

CeNeS also is investigating catechol-o-methyltransferase, or COMT, inhibitors as therapies to treat Parkinson's disease and schizophrenia.