Cephalon accepts Teva’s $6.8 billion white knight bid
pharmafile | May 3, 2011 | News story | Research and Development, Sales and Marketing | Cephalon, Teva, Valeant, generics
Generics giant Teva has acquired Cephalon for $6.8 billion and says the deal will make it a leading specialty pharmaceutical company.
Teva will gain new footholds in oncology and pain management and expand its existing presence in CNS.
The combined company will have a branded portfolio of more than 20 products, bringing in around $7 billion in annual sales, and a pipeline with more than 30 late-stage compounds.
President and chief executive Shlomo Yanai said: “This is transforming for Teva’s branded business, as it will help us to deliver on our strategic goal of creating a diversified, multi-faceted company.
“We have been following Cephalon for a long time and are very happy with the opportunity to join forces. Our significantly broader portfolio will permit marketing and sales synergies and enhance profitability.”
The deal, which is expected to be completed by the third quarter of this year, also allows Cephalon to escape a hostile takeover bid from Canadian neurology and dermatology specialist Valeant, who offered $5.7 billion for the company in March.
Kevin Buchi, chief executive US-based Cephalon, said the tie-up with Teva was the result of a ‘rigorous process’ that included a review of a wide-range of strategic options designed to maximise value to shareholders.
“By joining forces with Teva, we will benefit from their scale, worldwide reach and operational excellence, allowing us to further pursue our shared goals of delivering new, innovative therapies to help patients around the world,” he added.
Cephalon has made itself more attractive over the past year by hitting the acquisition trail hard, with a $615 million purchase of specialist generics firm Mepha in April last year.
More recently there was a $225 million deal for oncology specialist Gemin X in March and in the same month the company also made a $231 million offer for ChemGenex Pharmaceuticals.
Ben Adams
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