Biotechnology company ImmuPharma PLC (IMM.LN) Friday inched closer to winning a fully-fledged licensing deal worth as much as $500 million with U.S. specialty drug maker Cephalon Inc. (CEPH) following promising results from an ongoing trial of lupus treatment Lupuzor.

ImmuPharma said an interim analysis of its phase II trial of Lupuzor suggests the drug is superior to a dummy pill as hoped, and is safe. Full results are expected soon.

ImmuPharma received $15 million at the end of last year from Cephalon as part of a deal for Lupuzor with the U.S. firm.

Cephalon has an option to take over development of Lupuzor once the phase II trial results are known. If it does, Cephalon will run the crucial phase III trials and ImmuPharma stands to make up to $500 million if various clinical, regulatory and sales milestones are met.

Teathers analyst Shawn Manning said the promising interim results raise the company's chances of success in the phase II trial. That would trigger another milestone payment he estimates could be of a similar size to the $15 million already received, if Cephalon takes on the drug.

Manning reckons the drug's sales could be as much as $6 billion a year if successful in trials.

At 1202 GMT, shares in ImmuPharma were up 11 pence, or 19%, at 69 pence, outperforming a lower FTSE All Share index, down 0.6%.

Company Web site: www.immupharma.com

-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; jason.douglas@dowjones.com

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