Karen BernsteinBioWorld Staff

WEST CHESTER, Pa. -- Cephalon Inc. said on Tuesday that it hasfiled for an initial public offering of 2.3 million shares ofcommon stock priced between $17 and $19 per share.

If the offering is completed, Cephalon will have 7.6 millionshares of common stock outstanding. Proceeds of the offeringwill be used primarily to expand pre-clinical trials and initiateclinical trials of Cephalon products.

Cephalon is focusing its research on treatments forneurodegenerative diseases in four areas: stroke, ALS (LouGehrig's disease), Alzheimer's disease, and head and spinalinjuries. All research is in pre-clinical trials.

Cephalon, founded in 1987, has raised $17 million in fiverounds of private financing. In May 1990, Cephalon andSchering-Plough Corp. signed a five-year deal to developprotease inhibitors and neurotrophic factor stimulators for thetreatment of Alzheimer's disease. Over the period of thecontract, Schering will invest $5 million in equity and willprovide $15 million in research funding. Schering has exclusiveworldwide product rights.

For the six months ended Dec. 31, Cephalon had no revenuesand a net loss of $1.1 million.

Following successful completion of the offering, Cephalon'smajor stockholders will be Burr, Egan, Deleage & Co., with a15.8 percent equity stake; Hambrecht & Quist, with 15.8percent; Oak Investment Partners with 9 percent; CopleyPartners with 6.8 percent; Hancock Venture Partners with 6percent; and Philadelphia Ventures with 5.3 percent.

Underwriters for the offering are Hambrecht & Quist Inc. ofNew York and Cowen & Co. of Boston. The stock will trade onthe NASDAQ exchange under the symbol CEPH.

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