Cerenia is for nausea. http://www.veterinarypartner.com/Content.plx?A=2798 It was originally developed for motion sickness in dogs but also works well for cats. It is effective, I don't understand exactly how it works but it effects a part of the brain that controls nausea. It has little in the way of side effects on it's own but of course there can be interactions with other medicines. It doesn't treat any specific illness it just controls nausea. I don't know anything about costs.
When it is used long term there are breaks taken. It's usually given for a few days and then a 1 or 2 day break then taken a few days again. It depletes a chemical in the brain, the break allows that chemical to build back up.
Sebastian is on Cerenia for his chronic pancreatitis - 5 days on, 2 days off. There are virtually no side effects that we can tell up to this point. I believe it is metabolized by the liver. It is expensive relative to other medications and supplements I buy for the cats, but worth it to keep Sebastian comfortable.
Cerenia contains one active ingredient, maropitant citrate, which helps block signals in the brain to help prevent vomiting and nausea (source). This article gives a more detailed explanation of how Cerenia works by blocking signals to the emetic center in the brain: http://www.vetstreet.com/pfizer/effective-treatment-of-vomiting-in-dogs