Cephalon, Teva deal

Teva will acquire cancer and neurology company Cephalon for $81.50 per share, or $6.8 billion in cash. The price is a 39% premium to Cephalon's close of $58.75 on March 29, before Valeant Pharmaceuticals International Inc. (NYSE:VRX; TSX:VRX, Mississauga, Ontario) made public an unsolicited offer to acquire Cephalon for $73 per share in cash, or about $5.7 billion. Following Teva's offer, Valeant said it would withdraw its offer. Valeant, which owns more than 1 million Cephalon shares, will receive $84.3 million from the transaction.

Teva said the acquisition will expand its CNS portfolio and add a commercial presence in cancer and pain management. The combined company is expected to have about $7 billion in sales from more than 20 branded products, including Cephalon's cancer drug Treanda bendamustine and excessive sleepiness drug Nuvigil armodafinil and Teva's multiple sclerosis (MS) drug Copaxone glatiramer. Cephalon reported 2010 sales of $2.8 billion. ...