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Apr 6, 2011

Cephalon Board Rejects Valeant’s $73 Per Share Unsolicited Takeover Bid

  • Cephalon’s board of directors has formally rejected Valeant Pharmaceuticals’ recent unsolicited $73 per share, $5.7 billion takeover bid. In a letter to Valeant’s CEO J. Michael Pearson, Cephalon CEO J. Kevin Buchi said an analysis by the firm and its independent financial advisors led to the conclusion that the Valeant proposal is both inadequate and not in the best interest of Cephalon’s shareholders.

    The Cephalon board states the offer was based on a "worst-case scenario"  valuation and represents virtually no premium to Cephalon’s 52-week high stock price. Moreover, Cephalon points out, the proposal ascribes “little or no value to Cephalon’s pipeline,” which the firm maintains is one of the broadest in the industry, with 10 late-stage product candidates targeting novel and best-in-class therapeutics. “The board believes that the Valeant nonbinding proposal is an opportunistic attempt by Valeant to shift this value to Valeant and its shareholders and away from Cephalon’s shareholders.”

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Scientifically Studying Ecstasy

MDMA (commonly known as the empathogen “ecstasy”) is classified as a Schedule 1 drug, which is reserved for compounds with no accepted medical use and a high abuse potential. Two researchers from Stanford, however, call for a rigorous scientific exploration of MDMA's effects to identify precisely how the drug works, the data from which could be used to develop therapeutic compounds.

Do you agree that ecstasy should be studied for its potential therapeutic benefits?

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