Buying the unique selling proposition

Although Cephalon Inc.'s planned acquisition of Salmedix Inc. for $160 million in cash plus $40 million in royalties is the company's first acquisition of a pure play cancer company, the deal fits CEPH's modus operandi of buying companies that have lead compounds with reduced risk profiles.

The 2000 acquisition of Anesta Corp. for $444 million in stock gave CEPH a marketed product: Actiq transmucosal fentanyl for breakthrough cancer pain. Last quarter, Actiq was its biggest seller at $101.9 million, up 45% from $70.2 million in the same period in 2004 and surpassing Provigil modafinil, CEPH's narcolepsy and sleep disorder drug, which posted first quarter sales of $100.1 million. ...