Valeant seeks to buy Cephalon

MISSISSAUGA, Ontario — Canadian drug maker Valeant Pharmaceuticals has proposed to buy Cephalon for $5.7 billion, Valeant said Tuesday.

The buyout offer, equal to $73 per share, includes a 29% premium over Cephalon’s stock price. Valeant noted it had made previous offers, but was “disappointed by Cephalon’s unwillingness to engage in discussions in a timely manner.”

“We have taken a close look at Cephalon’s business and believe we put forward a very compelling offer for Cephalon’s stockholders,” Valeant chairman and CEO J. Michael Pearson said. “We are also committed to trying to find additional value if we are allowed to conduct due diligence.”

Cephalon makes the sleep disorder drugs Nuvigil (armodafinil) and Provigil (modafinil) and the pain treatment Fentora (fentanyl), among others. Valeant makes such drugs as the topical acne treatment Acanya Gel (clindamycin phosphate and benzoyl peroxide) and various branded generics.