Teva-lon underscores the innovation message
This article was originally published in Scrip
Executive Summary
When Teva came in with its $81.50 per share, $6.6 billion offer to buy Cephalon on 2 May, it was offering $8.50 a share more than Cephalon's hostile suitor, the Canadian specialty pharma company, Valeant. So the question is, where does Teva find around $600 million of extra value within a company 40% of whose $2.8 billion in revenues in 2010 is under threat as patents on its lead product, Provigil, expire.