Analysts believe Valeant's management when they say they're looking for quick resolution in their bid to buy Cephalon. What's more? Cephalon may be helping the bid with some of its recent acquisitions that may more or less created doubt amongs its shareholders. One might argue these acquisitions prime function are to make themselves less attractiv eto Valeant.
Valeant says not to worry. We are experts at integration and squeezing out the costs. In fact, Valeant was able to extract better than projected savings after its merger with Biovail. It's approach is to reduce its taxes and costs, and to spend lower on R&D than do most industry peers -- only about 50% as much on a percent of sales basis.
We shouldn't have to wait long for a decision. Cephalon shareholders will be able to vote on the Valeant offer (a 29% premium over Cephalon's 30 day average) in the next 20 days. See Fierce Biotech and Seeking Alpha.
Posted by Bruce Lehr March 31st 2011.