Cephalon to acquire French pharma group
US biopharmaceutical company Cephalon is to buy the French pharmaceutical company Group Lafon for US$450m (€497m) in cash. The deal includes Lafon's commercial, r&d and manufacturing operations and will give Cephalon worldwide rights to its flagship product Provigil (modafinil) Tablets [C-IV].
The acquisition will increase product sales for Cephalon, significantly improve gross margins for Provigil by eliminating payments to Lafon, improve profitability and provide Cephalon with an important research, commercial and manufacturing infrastructure in France. The deal also includes Lafon's manufacturing facilities in Mitry-Mory where the active drug substance found in Provigil is produced.
Cephalon will acquire the entire portfolio of Lafon products sold in France, which will generate an estimated US$80m (€88m) in additional revenue next year. The products include Modiodal (the brand name for modafinil sold in France), Spasfon (phloroglucinol), an antispasmodic drug, Fonzylane (buflomedil), used to treat cardiovascular disorders, Olmifon (adrafinil), a central nervous system stimulant and antidepressant, and 10 other products. Through Lafon, Cephalon plans to launch Actiq (oral transmucosal fentanyl citrate) [CII] in France in 2002.
The agreement opens up new growth opportunities for both companies, which have been partners since 1993 when Lafon first licensed to Cephalon the rights to develop and commercialise Provigil in the US. By joining the international marketing organisation built by Cephalon, Lafon can accelerate the growth of its business in France, potentially increase sales and production of Provigil/Modiodal and other products and participate in new European markets.
Francois Lafon, president and Directeur General of Lafon, said: 'Long-term success in the French pharmaceutical market requires continuous innovation, acquiring superior knowledge, and expanding marketing resources. Our relationship with Cephalon is a long and positive one, and Cephalon's ambitions for France and Europe give our people exciting opportunities for the future.'