Cephalon Inc., which last month registered with theSecurities & Exchange Commission to sell 2.5 millionshares, said Monday it has expanded the offering toaccommodate an additional purchase of about $11.4million worth of stock by the company's JapaneseMyotrophin partner.

Jason Rubin, Cephalon's vice president of corporatecommunications, said the equity investment by KyowaHakko Kogyo Co. Ltd. would be the first for the Tokyo-based pharmaceutical firm, which began collaboratingwith Cephalon in 1992.

Cephalon's stock (NASDAQ:CEPH) was up $1.75Monday, closing at $23.38, an 8 percent jump.

The Kyowa Hakko alliance, focusing onneurodegenerative diseases, was expanded in 1993 toinclude Myotrophin, which is the West Chester, Pa.-based company's treatment for amyotrophic lateralsclerosis, or Lou Gehrig's disease.

Rubin said Kyowa Hakko has completed Phase I trials inJapan with Myotrophin.

Cephalon's registration for a public offering June 27followed release earlier in the month of positive Phase IIItrial data in the U.S. for Myotrophin, which is arecombinant human insulin-like growth factor. The trialresults demonstrated the drug can slow progression of thedeadly Lou Gehrig's disease and lessen the severity of thedisorder.

When Cephalon proposed the offering, which has not yetbecome effective, the company was trading at $16.75.

Cephalon, which is developing Myotrophin in the U.S.with Emeryville, Calif.-based Chiron Corp., expects tofile a new drug application with the FDA by early 1996.

With Kyowa Hakko's proposed stock purchase, Cephalonexpanded the registration for the offering from 2.5million shares to 3.3 million shares.

The Japanese company said it wants to buy 1 billion yen($11.4 million) worth of Cephalon stock. Cephalon saidthe number of shares purchased will depend on thecurrency conversion rate. n

-- Charles Craig

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