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JERUSALEM and FRAZER, Pa. — Teva Pharmaceutical Industries Ltd. plans to acquire Cephalon Inc. in a $6.8 billion cash deal.
The pharmaceutical companies said Monday that the $81.50-per-share acquisition agreement, pending regulatory and shareholder approvals, is expected to close in the third quarter.
Jerusalem-based Teva noted that the deal reinforces its long-term strategy of building out its branded and specialty pharmaceuticals business through diversification and expansion of its product portfolio and pipeline. The combined company will have a branded drug portfolio of more than 20 products representing about $7 billion in sales, with a pipeline including more than 30 late-stage compounds.
According to Teva and Frazer, Pa.-based Cephalon, the transaction will create immediate and sustainable value in niche therapeutic areas such as CNS, oncology, respiratory and pain management, and the combined company will become a leader in specialty pharmaceuticals.
"We are embarking today on a new and exciting future for Teva’s branded business, and we are delighted that we will be working together with the Cephalon team," Shlomo Yanai, president and chief executive officer of Teva, said in a statement. "This is transforming for Teva’s branded business, as it will help us to deliver on our strategic goal of creating a diversified, multifaceted company. We have been following Cephalon for a long time and are very happy with the opportunity to join forces. Our significantly broader portfolio will permit marketing and sales synergies and enhance profitability."
Teva noted that it will benefit from Cephalon’s brand expertise, infrastructure and talent in specialty pharma. Teva said the companies share complementary commercial and R&D capabilities, with proven teams of talented employees with experience in bringing products to market. In addition, Teva said that with Mepha it will benefit from the No. 1 generic drug company in Switzerland and gain a presence in high-growth emerging markets.
The combined company’s broad product portfolio also stands to support Teva in achieving its goal of growing its branded drug revenue from $4.6 billion last year to more than $9 billion in 2015.
"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," Cephalon CEO Kevin Buchi stated. "Teva shares our strong commitment to R&D, and we believe our pipeline will thrive under their leadership. We look forward to working with the Teva team to ensure a smooth transition and complete the transaction as expeditiously as possible."
