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Pharmaceutical industry

Cephalon to Acquire CIMA Labs in Completed Transaction

Strategic Insights

— 1 min read

Cephalon, Inc., a multinational biopharmaceutical company, has announced the completion of its acquisition of CIMA LABS INC. (CIMA), a company specializing in orally disintegrating drug delivery systems. The transaction, cleared by the U.S. Federal Trade Commission (FTC), is expected to close within the next few days. Steven Ratoff, Chairman and interim CEO of CIMA, stated that the acquisition presents a tremendous opportunity for CIMA's employees to continue their efforts in growing the business, while Frank Baldino, Jr., Ph.D., Chairman and CEO of Cephalon, emphasized the company's excitement in combining CIMA's operations into its business, particularly with the potential of OraVescent(R) fentanyl.

Key Takeaways:

  • The transaction is expected to close within the next few days, following clearance from the U.S. Federal Trade Commission (FTC).
  • Cephalon will retain the right to continue marketing ACTIQ, while granting a license to Barr Laboratories, Inc. for any remaining intellectual property related to ACTIQ.
  • OraVescent(R) fentanyl, a tablet utilizing an enhanced absorption transmucosal delivery technology developed by CIMA, is currently in Phase III clinical trials for the treatment of breakthrough cancer pain.
  • Cephalon plans to pursue a broader label for OraVescent fentanyl, aiming to expand its pain care franchise and increase market penetration.
  • The acquisition is expected to result in additional sales of approximately $15 million and other revenue of approximately $10 million during the remainder of 2004 for Cephalon.
  • Cephalon's sales guidance for 2004 has been increased by $15 million to $915-$965 million, with an additional increase in third quarter 2004 sales guidance by $5 million, totaling $250-$260 million.

Statistics:

  • Cima Labs' business involves a dual operating strategy, developing and manufacturing orally disintegrating versions of drugs for pharmaceutical company partners and developing proprietary products using its orally disintegrating technologies.
  • The acquisition will see Cephalon's sales increase by $915-$965 million in 2004.
  • The estimated effectiveness of the Barr license will depend on the FDA approval of OraVescent fentanyl, anticipated to occur in late 2006, or the date of Cephalon obtaining pediatric exclusivity.
  • The employment level of Cephalon after the acquisition remains approximately 2,000 personnel in the United States and Europe.

Sources:

  • Company press release
  • Cephalon, Inc.
  • CIMA LABS INC.
  • Federal Trade Commission (FTC)

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