Cephalon will acquire all of the outstanding share capital of Zeneus Holdings for approximately $360 million in cash. The transaction is expected to close no later than early in the first quarter of 2006. Cephalon expects the transaction to generate approximately $100 million in additional sales next year and to be neutral to earnings in 2006 and accretive to earnings thereafter.
The transaction is designed to accelerate Cephalon’s entry into the European oncology market with several commercialized products including Myocet, a breast cancer treatment; Targretin, a treatment for lymphoma; and Abelcet, an anti-fungal treatment. In addition, Zeneus has 12 other marketed products as well as several investigational compounds in early or late stage development.
With this acquisition, Cephalon will add offices in Spain and Italy and bolster its existing presence in France, Germany and the UK. This transaction will add approximately 245 Zeneus Pharma employees to Cephalon Europe, including 170 sales and marketing professionals working across 18 countries. Zeneus Holdings will operate as a wholly owned subsidiary of Cephalon.
“This agreement will significantly expand our product portfolio in Europe and is consistent with our strategy and recent transactions in the US that create a platform from which we will grow our oncology business,” said Dr Frank Baldino Jr, chairman and CEO of Cephalon. “Zeneus Pharma is an excellent strategic fit for our company.”