Cima Labs Parent Company Bought for $6.8B
The parent company of Brooklyn Park-based pharmaceutical company Cima Labs, Inc., has entered into an agreement to be purchased by Israel-based Teva Pharmaceutical Industries, Ltd., for $6.8 billion.
Cephalon, Inc.-which purchased Cima Labs in 2004 for $515 million-announced Monday that Teva will acquire all of the outstanding shares of Cephalon for $81.50 per share in cash, or a total value of about $6.8 billion.
The deal, which is expected to close in the third quarter, represents a 39 percent premium to Cephalon's stock price on March 29, the last closing price before the unsolicited proposal was announced.
Cephalon is a global biopharmaceutical company that has sales of more than $2.76 billion.
Cima Labs formulates, taste-masks, and manufactures pharmaceuticals using orally disintegrating tablets and other drug-delivery technologies. It was founded in 1986, and its annual revenue falls somewhere between $25 million and $100 million, based on information that the company provided to Twin Cities Business earlier this year.
It is unclear whether and how the acquisition might affect Cima Labs' operations and its 200 employees.
A Teva representative said in an e-mail that it is too early to comment on future plans and would not disclose any information about how the combined company will be structured. Cima Labs referred all acquisition-related phone calls to Cephalon, which did not immediately return a Tuesday morning phone call requesting information about the future of the company.
Teva said that the transaction reinforces its long-term strategy of building out its branded and specialty pharmaceuticals business through diversification and expansion of its product portfolio and pipeline.
The combined company will have more than 20 branded products, sales of about $7 billion, and more than 30 pharmaceutical compounds in late-stage development, including three products in filing stage.
“Cephalon's merger with Teva is the result of a rigorous process that included a review of a wide-range of strategic options undertaken by Cephalon's board of directors and management team to maximize value and deliver significant returns to shareholders,” Kevin Buchi, CEO of Cephalon, said in a statement. “By joining forces with Teva, we will benefit from their scale, worldwide reach, and operational excellence, allowing us to further pursue our shared goals of delivering new, innovative therapies to help patients around the world.”