Teva Snatches Cephalon from Valeant
Israel-based Teva Pharmaceuticals Industries has sealed a deal to acquire Cephalon for $6.8 billion. In a press release issued on May 2, 2011, Teva explained that it will pay $81.50 cash per share in a transaction that is expected to be completed in the third quarter of 2011. The companies' combined portfolio will include more than 20 branded products and represent approximately $7 billion in sales.
Cephalon is one of the world's fastest-growing biopharmaceutical companies. According to Teva, the move will enhance its pipeline of more than 30 late-stage products in key therapeutic areas, including the central nervous system and oncology, and allow expansion into new areas, such as pain management. "This [deal] is transforming for Teva's branded business, as it will help us to deliver on our strategic goal of creating a diversified, multifaceted company," said Shlomo Yanai, president and CEO of Teva, in Teva's press release.
"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," said Kevin Buchi, CEO of Cephalon, in the Teva release.
Teva's offer trumped Valeant's earlier hostile takeover bid of $73 per share by a 12% premium. In a short press release issued in response to the news, Valeant chairman and CEO, J. Michael Pearson, stated, "We believe that this announcement is positive news for Cephalon stockholders and we are pleased that Teva has paid what we believe is a very full value for the company and as a result, have withdrawn our consent solicitation."
Teva, the world's largest generic-drug maker, also plans to buy Japan's third-largest generic-drug company, Taiyo Pharmaceutical Industry, for around $500 million, according to a May 3, 2011, Nikkei report.
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