"Teva is buying an interesting pipeline and elegant portfolio of products," said Clal Finance Ltd. analyst Jonathan Kreizman in response to the acquisition of biopharmaceutical company Cephalon Inc. (Nasdaq: CEPH) for $6.8 billion by Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA). He says that the acquisition will save Teva $500 million a year in expenses, from the third year after the closing, and that Teva will see a payoff from the acquisition within a year.
Cephalon develops brand drugs for the treatment of cancer, respiratory illnesses, neurological disorders, and pain. Its biggest drugs are Provigil for improving wakefulness in people with sleep apnea and narcolepsy; Fentora, an opioid pain reliever for cancer pain; Gabitril for the treatment of epilepsy; and Treanda, for the treatment of chronic lymphocytic leukemia.
Kriezman added, "We believe that the pipeline is the main motive for the deal, and it is very interesting, including an eye cancer drug on the verge of a Phase III clinical trial, an asthma treatment, and a treatment for bone marrow cancer. Cephalon will have five drugs undergoing Phase III trials in 2012."
Published by Globes [online], Israel business news - www.globes-online.com - on May 2, 2011
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