US Regulators Clear Teva Acquisition of Cephalon

From Associated Press (October 7, 2011)

Generic drugmaker Teva Pharmaceutical Industries Ltd. said Friday the U.S. Federal Trade Commission has cleared its $6.8 billion acquisition of Cephalon Inc., but regulators will require it to divest some applications for generic drugs.

The Israeli company said it will divest abbreviated new drug applications for generic versions of the painkiller Actiq and the muscle relaxant Amrix.

The acquisition was announced in May, and Cephalon shareholders approved it in July. Teva said it expects to close the deal by Oct. 14, depending on approval from European regulators. Cephalon, based in Frazier, Pa., makes cancer drugs, the sleep disorder drug Provigil, and pain drugs like Fentora.

Teva, the world's largest maker of generic drugs, said it also will grant non-exclusive U.S. rights to another company for a generic version of Provigil.

Teva American Depositary Shares fell 83 cents, or more than 2 percent, to $36.75 in Friday trading, while Cephalon shares fell 9 cents to $81.07. The Nasdaq composite index was down 1.1 percent, and the Dow Jones industrial average fell less than a percent.

 

Posted: October 2011


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