2011-05-05 / Local & State

Teva Buying Cephalon For $6.8 Billion

NEW YORK (AP) – Teva Pharmaceutical Industries Ltd. has agreed to buy Cephalon Inc. for $6.8 billion in a deal that would give the world's largest generic drug developer a range of biotechnology drugs aimed at cancer and other conditions.

Teva, based in Israel, said Monday it agreed to pay $81.50 per share, a 5.8 percent premium to Cephalon's closing price on Friday. The price is a 12 percent premium to an offer that another suitor, Valeant, made for Pennsylvania-based Cephalon in March.

The Teva and Cephalon boards have each approved their proposed deal.

Cephalon shares rose 4 percent to $80.10 in pre-market trading. The combined company would have a portfolio of branded drugs with $7 billion in annual sales and more than 30 potential products in late-stage development.

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