Cephalon to Acquire Mepha AG for $590 million from Merckle family

US drugmaker Cephalon has signed an agreement to acquire Mepha AG and its subsidiaries, a profitable, privately-held, Swiss-based generic and branded drugs company, from the German Merckle family-owned Mepha Holding AG, for a consideration of 622.5 million Swiss francs ($590 million).

Cephalon noted that Mepha manufactures and markets over 120 products in 50 countries and recognized sales of approximately 400 million francs in 2009. With its exposure to high-growth international markets, and a track record of innovation, Mepha has achieved compound annual growth rates (CAGR) in sales of more than 13% over the last five years. In addition to its existing products, Mepha has a broad pipeline of approximately 50 chemical entities planned for launch over the next five years.

According to observers, Mepha, which has been up for sale, along with sister company Ratiopharm and drug wholesaler Phoenix since the suicide last January of its principal, Adolf Merckle, who had amassed debts of an estimated $6.8 billion, had been hoped to generate a buying price around 700 million francs for the Merckle family. There are thought to be just three remaining bidders for Ratiopharm - Teva, Pfizer and EQT (The Pharma Letter January 19).