A Closer Look At Today’s Consolidation in the Pharmaceutical Industry

Teva Pharmaceutical Industries Limited (NASDAQ:TEVA) announced today that it is acquiring Cephalon, Inc. (NASDAQ:CEPH) in a $6.8 billion deal.

About the companies:

Teva Pharmaceuticals Industries Ltd.: Its market capitalization is $42 billion, its trailing price-to-earnings ratio is 12.85, it earned $3.66 per share last year, and it pad a dividend of $0.87 per share.  The shares have traded in a 52 week range of $44.86 to $60.78, and most recently traded at $47.03.  The shares are up $1.36, or 2.89%%, today on news of its pending acquisition of Cephalon, Inc.

The company develops, manufactures and markets generic and branded human pharmaceuticals and active pharmaceutical ingredients.  The Company produces antibiotics, oncological products, Alpha D3 for treatment of post-menopausal bone loss in women and Copaxone for treatment of multiple sclerosis.  Teva develops novel drugs for diseases of the central nervous system.

Cephalon, Inc.: Its market capitalization is $6.1 billion, its trailing price-to-earnings ratio is 15.35, and it earned $5.27 per share last year.  Its shares have traded in a 52 week range of $54.15 to $81.11, and most recently traded at $80.86.  Its shares are up $3.83, or 4.97%, today on news of its pending acquisition by Teva Pharmaceuticals Industries Ltd.

The company is an international biopharmaceutical company that discovers, develop,s and markets biopharmaceutical products to treat neurological disorders, paid, and cancer.  The Company’s products include a product that treats excessive daytime sleepiness associated with narcolepsy.

Other companies that operate in this industry include:  Watson Pharmaceuticals (NYSE:WPI), Valeant Pharmaceutical (NYSE:VRX), Bristol Myers Squibb Co. (NYSE:BMY), Biogen Idec, Inc. (NASDAQ:BIIB), Johnson & Johnson (NYSE:JNJ), Jazz Pharmaceuticals (NASDAQ:JAZZ), ChemGenex Pharmaceuticals (CXSPY), Abbott Laboratories (NYSE:ABT), and Mylan, Inc. (NASDAQ:MYL).

Note: Financial data is taken from Yahoo! Finance.  Selected other data is taken from Google Finance.  All data are assumed to be accurate.

Don’t Miss Everything You Need to Know About Earnings Season>>

More from The Cheat Sheet