Cephalon ( CEPH) signed an agreement to acquire Salmedix, a privately held oncology drug development company, for about $160 million in cash.

The company is required to pay an additional $40 million if certain regulatory milestones are achieved. Salmedix's most advanced product, Treanda, is in phase II clinical trials for the treatment of slowly progressing non-Hodgkin's lymphoma.

Cephalon said Thursday it will obtain all rights to market Treanda in the U.S. and Canada. The company expects to close the merger in the second quarter. Cephalon expects the purchase to reduce 2005 earnings by 10 cents to 15 cents a share. The company will reissue its 2005 earnings guidance when the transaction closes.

Founded in 2000, the San Diego-based company is primarily focused on developing compounds for the treatment of hematologic malignancies, such as lymphomas, myeloma and leukemias.

In a separate release, Cephalon and H. Lundbeck said they will discontinue their clinical trial of CEP-1347 in Parkinson's disease. An independent data monitoring committee completed a review of the interim results and concluded that the data are unlikely to provide evidence of a significant effect. There were no safety concerns.

Shares of Cephalon were down 53 cents, or 1.2%, to $44.60 in after-hours trading.