Cephalon to acquire Swiss generic firm Mepha for $590 million

Biopharmaceutical firm Cephalon today agreed to acquire Swiss-based generic drug maker Mepha AG and its subsidiaries for $590 million to expand in Latin America, Africa and the Middle East.

A Fortune 1000 company with 2008 sales of $2 billion, Cephalon is acquiring Mepha from the Merckle family-owned Mepha Holding AG through an auction.

It was reported in November that about six large pharmaceutical companies and specialist generic-drug manufacturers were eyeing Mepha and the Merckle family expected to raise more than $689 million from sale.

Founded in 1949 and based in Aesch, Switzerland, Mepha AG is a privately-held firm that manufactures and markets more than 120 generic and branded generic drugs in 50 countries. In 2009 it had sales of around $377 million.

It portfolio of drugs is used to treat anti-infective, anti-malarial, cardiovascular-endocrinological, central nervous system, gastrointestinal-urogenital, musco sceletal-pain, respiratory-ENT related problems.

Pennsylvania-based Cephalon, co-founded in 1987 by Dr. Frank Baldino, Jr, a pharmacologist and former scientist with the DuPont was named one of the 10 most respected biotechnology firms in the world by industry publication MedAd News in 2006.