Teva swooped in at the 11th hour to scoop up Cephalon -- also being pursued by Valeant in a hostile bid -- for $6.8 billion. The deal is for $1.1 billion more than Valeant had proposed. Teva will add Cephalon's portfolio of specialty branded products to its offering. In particular, it will pick up new drugs in the CNS, oncology, pain and respiratory ailments categories. The deal is expected to reduce Teva's dependence on the sales of its drug Copaxone (for MS) in the future.
Analysts termed Teva's offer as fair. They also said that Valeant would be unlikely to raise its offer to match or better it. Valeant was planning on 100% debt financing, while Teva does not depend on financing.
Cephalon's CEO, Kevin Buchi, couldn't resist a small swipe at Valeant CEO, J. Michale Pearson, who has been highly critical of Cephalon's R&D spending. Said Buchi, " Teva shares our strong commitment to R&D, and we believe our pipeline will thrive under their leadership." Take that!
Posted by Bruce Lehr May 2nd 2011.