CXS holders should take note of the following comments by...

CXS holders should take note of the following comments by
Valeant's CEO to Cephalon:
"You (Cephalon)are quite aware that investments in early-stage development programs are inconsistent with our strategy and quite frankly, from our perspective, this move has reduced the value creation potential of the proposed merger".
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OOPEEK Disclosure:
On Tuesday I sold my CXS holding @ 67.5.
In my view there is currently too little upside and too much downside with this company and CXS board/management.
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Player ChemGenex caught in raid crossfire

LEUKEMIA drug developer ChemGenex insists a $225 million takeover bid from mid-sized US company Cephalon is still alive despite the predator itself falling prey to a hostile raider overnight.

"Our deal is still current, nothing has changed . . . I haven't heard any different," ChemGenex chief executive Greg Collier told BusinessDaily after Canada's Valeant Pharmaceuticals said it would act within days to spill the Cephalon board, following its rejection of a $US5.7 billion bid.

Valeant yesterday released confidential correspondence it had sent to the Cephalon board.

In a letter dated March 25, Valeant chief executive Michael Pearson chastised Cephalon for its "unwillingness" to discuss the $US73 a share formerly friendly bid.

"I was extremely disappointed that on Monday you announced an agreement to acquire another early-stage R&D program for $225 million in cash and other potentially significant obligations before engaging in a discussion with us regarding our offer," Mr Pearson wrote.

"You are quite aware that investments in early-stage development programs are inconsistent with our strategy and quite frankly, from our perspective, this move has reduced the value creation potential of the proposed merger,' it continued.

Asked if the deal described in the letter referred to the ChemGenex offer, Mr Collier told BusinessDaily: "I have no idea."

In an earlier statement, the Australian biotechnology company said Cephalon was obliged to make offers of 70c a share to ChemGenex shareholders within two months.

"There is nothing in the bid conditions announced on March 29, 2011 which allows Cephalon to terminate its offer because of a change of control in respect of Cephalon," the statement said. "ChemGenex will update the market where it becomes aware of any matters which may have a material impact on Cephalon's takeover offer in respect of ChemGenex."

Olga Galacho From: Herald Sun March 31, 2011 12:00AM

http://www.heraldsun.com.au/business/player-chemgenex-caught-in-raid-crossfire/story-e6frfh4f-1226031014511?from=public_rss