Teva Completes Cephalon Acquisition After Winning EU Approval

Teva Pharmaceutical Industries Ltd. (TEVA), the world’s largest generic drugmaker, completed its acquisition of Cephalon Inc. (CEPH) after it agreed to sell off a generic version of Cephalon’s biggest product, Provigil.

The divestment of a generic version of modafinil, the active ingredient in the narcolepsy treatment Provigil, “will allow a competitor to emerge and compete effectively” with the combined company, the European Commission said in an e-mailed statement today. Teva and Cephalon said yesterday that they won EU approval.

EU antitrust regulators are separately investigating Teva and Cephalon over a 2005 agreement that may have delayed generic versions of Provigil.

Teva, based in Petach Tikvah, Israel, agreed in May to buy Cephalon in a deal valued at $6.8 billion including assumed debt. The acquisition will help Teva offset the revenue it may lose as its top-selling product, the multiple-sclerosis drug Copaxone, faces competition from generic versions and new branded products.

The deal will add to earnings within the fourth quarter after closing, Teva said. Excluding costs linked to acquisitions, the acquisition will add to earnings immediately.

Acino Holding AG (ACIN) said today that it agreed to buy the Middle Eastern and African business of Cephalon for 60 million euros ($83 million) in cash and 20 million euros of new shares.

To contact the reporter on this story: Aoife White in Brussels at awhite62@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net

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