Valeant issues letter to Cephalon stockholders

MISSISSAUGA, Ontario — Valeant Pharmaceuticals International is taking its case directly to Cephalon’s shareholders in its effort to acquire the Frazer, Pa.-based drug maker.

In a letter to the shareholders Thursday, Valeant said its $73-per-share offer, totaling $5.7 billion, was a 29% premium over the 30-day stock price of Cephalon, noting that the price had declined over the last five years and that the average stock price in the month before the offer was $57, which Wall Street analysts didn’t expect to rise above $60.

Valeant also said that Cephalon had not brought a major, novel product to market since 1998 and that Wall Street analysts had predicted the company would face tough times in the future.

Further, Valeant criticized Cephalon’s board, saying it was refusing to let shareholders choose and that impediments that prevented the consummation of Valeant’s offer had been put in place.