The pharmaceutical industry has witnessed a great consolidation over the past few years as a dearth of blockbuster drugs like Viagra has hit profit margins. This week, Teva Pharmaceuticals announced it will buy Cephalon as it looks to strengthen its specialty pharmaceuticals division amidst burgeoning competition. The deal, worth a reported $6.8 billion, puts Teva on track to meet the aggressive 2015 revenue targets the company has laid out. Since the deal was announced, shares of Cephalon have risen over 5.5 percent to $81.25 per share in early morning Monday trading.
At the beginning of the year, Teva executives intimated that they were looking for companies to acquire that could help boost the company's core generics business and presence in the branded drugs market. Cephalon fit the latter category, the company said in a statement.
"We are embarking today on a new and exciting future for Teva's branded business, and we are delighted that we will be working together with the Cephalon team," Teva chief executive Shlomo Yanai affirmed. ""This is transforming for Teva's branded business, as it will help us to deliver on our strategic goal of creating a diversified, multi-faceted company."
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