Cephalon, Inc. has signed an agreement with Ception Therapeutics, a privately held biopharmaceutical company, to acquire all outstanding capital stock of Ception.

Under the terms of the option agreement, Cephalon will pay Ception a $100 million upfront option payment.

Sources revealed that Cephalon may exercise its option at any time prior to expiration of a specified period after receipt of the final study report for the pediatric EE clinical trial.

If Cephalon exercises its option, the company will purchase all of the outstanding capital stock of Ception for $250 million.

However, Ception shareholders could receive additional payments related to clinical and regulatory milestones.

Cephalon, Inc., a biopharmaceutical company, engages in the discovery, development, and marketing of products to treat human diseases in the United States and internationally.

The scrip of Cephalon closed at $74.55 on Nasdaq. The shares touched an intraday high and low of $75 and $74 respectively.