Pharma BD Deal Intelligence

Cephalon Inc. / Group Lafon (France)

2001 · Acquisition/Merger · $450M · Complete

CALLED IT — OFF BY 13

Lafon delivered exactly what Cephalon bought it for — full control of Provigil, which became a $1B+ blockbuster — but Cephalon's subsequent scramble to protect that franchise from generics triggered a $1.2B antitrust settlement, and the whole company (with this asset as centerpiece) was sold to Teva a decade later.

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The coverage arc

Dec 03, 2001 SEC EDGAR - Cephalon 8-K Exhibit 99.1 (announcement press release) Bullish

The acquisition will increase product sales for Cephalon, significantly improve gross margins for PROVIGIL by eliminating payments to Lafon, improve…

Dec 04, 2001 The Pharma Letter Neutral

US biopharmaceutical company Cephalon has signed an agreement to acquire France's Group Lafon for $450 million in cash. The deal is expected to close by the…

Jan 01, 2024 Wikipedia (Modafinil) Bullish

Cephalon obtained modafinil rights from Lafon and grew Provigil to nearly $1B in sales by 2008; Teva later acquired Cephalon in 2011 for $6.8B.

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$450M cash. Acquired worldwide rights to Provigil (modafinil) plus Mitry-Mory mfg facility. Closed 2001-12-28.

Did it work? Outcome assessment

Lafon delivered exactly what Cephalon bought it for — full control of Provigil, which became a $1B+ blockbuster — but Cephalon's subsequent scramble to protect that franchise from generics triggered a $1.2B antitrust settlement, and the whole company (with this asset as centerpiece) was sold to Teva a decade later.

Strategic verdict
Achieved Stated Rationale

Key facts

Related deals — scored

DealYearValueOutcome
Cephalon Inc. / Group Lafon (France) (this deal)2001$450M80
Cephalon Inc. / Laboratoire L. Lafon S.A. (Group Lafon)2000$450M89
Cephalon Inc. / Salmedix, Inc.2005$160M89
Cephalon Inc. / Cell Therapeutics, Inc.2005$70M74
Cephalon Inc. / Anesta Corp.2001$444M65
Cephalon Inc. / Anesta Corp.2000$444M64
Cephalon Inc. / Zeneus Holdings Limited (Zeneus Pharma)2005$360M63

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