Pharma BD Deal Intelligence

Cephalon Inc. / Salmedix, Inc.

2005 · Acquisition/Merger · $160M · Complete

CALLED IT — OFF BY 6

A ~$200M bet on a Phase 3 oncology asset turned into a $600M+/year blockbuster (Treanda/Bendeka) that anchored Cephalon's oncology franchise and became a marquee asset in Teva's subsequent $6.8B Cephalon buyout.

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The coverage arc

May 12, 2005 Cephalon Inc. Form 8-K (press release exhibit) Bullish

Cephalon signed a definitive merger agreement to acquire Salmedix for approximately $160 million cash plus up to $40 million in regulatory milestones, gaining…

May 13, 2005 The Pharma Letter Neutral

The Pharma Letter reports Cephalon agreeing to buy Salmedix for $160 million, acquiring the lead candidate Treanda (bendamustine) for non-Hodgkin's lymphoma…

Dec 15, 2009 Clinical Cancer Research / PMC Bullish

Bendamustine described as 'the new 46-year-old kid on the block' in B-cell malignancies—repositioning a 1960s German alkylator into a modern CLL/iNHL frontline…

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Cephalon agrees to acquire Salmedix for $160M cash. Gains bendamustine (later Treanda) - became >$1B oncology blockbuster.

Did it work? Outcome assessment

A ~$200M bet on a Phase 3 oncology asset turned into a $600M+/year blockbuster (Treanda/Bendeka) that anchored Cephalon's oncology franchise and became a marquee asset in Teva's subsequent $6.8B Cephalon buyout.

Strategic verdict
Achieved Stated Rationale

Key facts

Related deals — scored

DealYearValueOutcome
Cephalon Inc. / Salmedix, Inc. (this deal)2005$160M89
Cephalon Inc. / Laboratoire L. Lafon S.A. (Group Lafon)2000$450M89
Cephalon Inc. / Group Lafon (France)2001$450M80
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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