Cephalon Inc. announced Monday that it has raised about $3million in a private placement of 285,000 shares of its commonstock (NASDAQ:CEPH) to venture capital firm TechnologyLeaders L.P.

The sale was priced at Friday's closing price of $10.50 pershare; the stock closed Monday at $10 a share.

With this placement, the West Chester, Pa., neurotech companyhas about 11.7 million shares outstanding, according to JasonRubin, vice president of corporate communications.

Rubin said that Cephalon had $53 million in cash at the end ofJune, with an additional $33 million available from CephalonClinical Partners L.P., which was formed with $45 million froma private placement in August 1992 to fund the developmentof Myotrophin for treating amyotrophic lateral sclerosis (ALS,or Lou Gehrig's disease).

Clinical trials on the compound, which is a recombinant form ofhuman insulin-like growth factor-1, began in the U.S. in lateAugust 1992. Cephalon is also developing a drug for treatingnarcolepsy.

It in-licensed the compound modafinil from the Frenchcompany Laboratoire L. Lafon and filed an investigational newdrug (IND) application for clinical trials in the U.S. in July.Cephalon will use the trial results to supplement the datapackage used to obtain marketing approval for modafinil inFrance.

-- Jennifer Van Brunt Senior Editor

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