The acquisition of U.S. biotechnology company Cephalon Teva



Victory over Canada to 6.8 billion hostile offer for rival Valeant Pharmaceuticals

Cephalon company's best-selling drug, Provigil to treat narcolepsy lose patent protection next year to imitation.

The world's largest generic drug manufacturers Teva Pharmaceuticals of Israel Crosses the recent higher than Canada's generic drug business competitors Valeant international pharmaceutical companies out of the purchase price, in one fell swoop to 6.8 billion won in the United States, Pennsylvania, Frederick Fraser City biotechnology company Cephalon.
The reason why fast shot Teva, Cephalon company aims to win "high-risk, high return" of the stem cell products and asthma and lung cancer drug to ease their faces increasing competitive pressures.

Three new drugs to make up for loss of income


Teva's operating results depend on the multiple sclerosis drug Copaxone, the drug accounted for 21% of sales revenue. The 6.8 billion acquisition of Cephalon, Teva received more than 30 clinical trials only in the latter part of the compound.

Teva CEO 施洛莫亚奈 said that with the increased competition faced by Copaxone, and Cephalon's most popular drug used to treat narcolepsy Provigil will lose patent protection next year, suffered the impact of generic drugs, which一产品研发线将确保梯瓦未来的业绩增长。

Cephalon and Australia Mesoblast jointly developed a new drug treatment of congestive heart failure with great potential, asthma and lung cancer drug Reslizumab drug Obatoclax is also optimistic about the market. Analysts said, Cephalon drug will make up for this three Teva's future loss of income.

In addition, if Cephalon stem cells can be successfully launched products, which will be a good deal.

Teva said in a statement it will pay cash $ 81.50 per share, compared with Valeant companies offer 12% higher. If Cephalon Teva assume the debt into account, the value of acquisitions made Cephalon 68 billion. Teva announced after the bid, Valeant plans to abandon the acquisition of Cephalon.

According to the report of Cephalon, the company listed a dozen drug development in 2016 will reach total sales of more than 90 billion dollars. The company's 2010 revenues $ 2,810,000,000, of which 1.12 billion U.S. dollars from Provigil.

Teva is responsible for business affairs, the United States president Bill Maas (Bill Marth) said, Cephalon's new drug R & D line better than Wall Street's assessment, "We think that it will bear rich fruit."

Novel biological products

Through the transaction, Teva will also receive a 20% stake in Mesoblast, this is a production of stem cell products. Last December, Cephalon and Mesoblast signed the deal, get the other 20% of the shares. The two companies jointly developed drugs Revascor adult stem cells be used for the treatment of congestive heart failure (CHF), analysts believe that the drug in this therapeutic area will set off a revolution.

January of this year, Cephalon announced that item 2 of 60 CHF patients for clinical studies, stem cell treatment in 45 patients the chance of adverse cardiac events than the control group of 15 patients.

Cephalon CEO Kevin Burkina Faso, said: "We see patients every occurrence of cardiovascular indicators improved. Although this is a very small data set, but in all endpoints have the same result that we believe that these cells is playing a role. "

In Cephalon's experimental drug, the most advanced is a novel biological products Reslizumab. Last February, Cephalon announced that, on 106 patients with severe asthma found that a test done, Reslizumab can improve asthma control and lung function. Currently, Ⅲ trial is under way, the end of 2012 there will be results. Market estimates, Reslizumab can reach hundreds of millions of dollars in annual sales.

Cephalon's product development in line, the other one is for the drugs Obatoclax small cell lung cancer. In the mid-term clinical trials, only those patients with chemotherapy compared to chemotherapy drugs used Obatoclax + patients survive longer.

Thanks to the high-risk drugs

Teva president of business affairs for the U.S. Masters, said before the offer in Valeant, Teva and Cephalon has been reached to discuss a possible deal, "our two companies has been in contact for a long time," he said last December, Cephalon founder and CEO of Frank when he died Barr Dino, so slow down the pace of negotiations, the two companies, "but, Valeant shot bid prompted us to more quickly."

Teva and Cephalon gamble in the past have benefited from high-risk drugs. Barr Bernardino in 1993 through the acquisition of the narcolepsy drug Provigil therapy in the bag, the drug with annual sales of market analysis at no more than 50 million U.S. dollars. 2009, Provigil has become a sales volume of over 10 billion dollars in "blockbuster." Some analysts said the loss of patent protection in the Provigil, after Teva to continue to the next generation of Drug Nuvigil from the proceeds of the sale. And investors are worried that patients will switch to cheaper generic products Provigil.

Teva estimates that the transaction operations in the first 3 years after completion, the annual savings of $ 500,000,000 for the company's costs. In addition to the brand drug Cephalon developed to get outside lines, Teva acquired last year, Cephalon will also control the generics sector Mepha company. Mepha Germany Moke Le family sold one of two pharmaceutical companies, Ratiopharm another company acquired last year by Teva.

Last year, Teva brand sales revenue generated by drug, Copaxone about 70% of the share. Cephalon will acquire the shares fell 47% in 2015. (Di-compiled)

Related news>>>

$ 500,000,000 Teva pharmaceutical manufacturers to buy at

Nikkei said recently that Teva Pharmaceutical company decided to 5 billion acquisition of Japan's third-largest generic drug makers to ocean pharmaceutical industry companies.

As the largest generic drug manufacturer, Teva will be by the founding family and other shareholders from the acquired majority stake in the company control of the ocean.

In 2005, Teva opened a Japanese subsidiary, in 2008, Teva Kowa Japanese mid-sized pharmaceutical companies producing generic drugs company set up a joint venture of Teva-Kowa Company.

Now it seems that mainly want to use the ocean Teva Company production of generic drugs, the use of Teva-Kowa company sales.

Generic drug market in Japan about 98.5 billion U.S. dollars, accounting for about 20% of the domestic pharmaceutical market, the proportion is far lower than the United States and Europe the level of 50% or more.

According to another report, recently, in a patent infringement lawsuit, Abbott sued Teva Pharmaceuticals, which plans to sell Abbott accused of testosterone gel AndroGel generic products.

Abbott asked a judge to stop Teva in the U.S. generic drugs on the market that has been lost to the AndroGel patent protection in 2021.

On behalf of Abbott's lawyer claimed in court documents, if the judge does not issue such an order because of the plaintiff's tort Teva serious and irreparable harm. (Master Army)





2011-05-19