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Teva Cephalon Merger

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Teva Cephalon Merger
MJacob Bliberg (jb3975@stern.nyu.edu)
Jasper Buntinx (jasper@buntinx.eu)
April 2013
Post-Acquisition Report

Teva Pharmaceutical Industries Ltd. (NASDAQ: TEVA) $6.8Bn acquisition of Cephalon, Inc. (NASDAQ: CEPH) – October 14, 2011 |

Teva Pharmaceutical Industries Ltd. (NASDAQ: TEVA) is a leading global pharmaceutical company which develops, produces and markets affordable generic drugs. Teva is the world's largest generic drug maker, with a direct presence in about 60 countries. Teva's branded businesses focus on neurological, respiratory and women's health therapeutic areas as well as biologics. | FINANCIAL FIGURES $Mn | Teva | Cephalon | Market CAP: | 46,029 | 4,848 | Debt: | 5,612 | 1,390 | Cash: | 2,248 | 1,648 | EV: | 49,393 | 4,591 | Sales: | 13,899 | 2,152 | EBITDA: | 4,761 | 721 | Net Income: | 3,029 | 335 | SE Book Value: | 19,222 | 2,262 | | Cephalon Inc, founded in 1987 is a biopharmaceutical company that develops and markets pharmaceuticals products for mainly central nervous system disorders, pain, oncology, and addiction. The company distributes eight proprietary products in the United States, and more than 100 products internationally. |

DEAL SUMMARY |
On May 2nd 2011, Teva Pharmaceutical Industries Ltd agreed to buy the biopharmaceutical company Cephalon for $81.50 per share or $6.8 billion in a bid to increase their presence in specialty, branded products. The offer followed after an earlier made hostile bid of $5.7 billion by Valeant Pharmaceuticals was rejected. It was said that Valeant’s $73.00 per share offer undervalued the company and was too opportunistic. Teva’s cash bid of $81.50 a share represents a 39% premium to Cephalon’s share price before Valeant’s unwarranted offer was announced, and a 12% premium on Valeant’s offer. As soon as Teva made its bid, Valeant, who owned 1million shares of Cephalon, announced it was good news and withdrew its offer immediately stating that it was not
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