International biopharmaceutical company Cephalon Inc. today announced it has signed an agreement to acquire Mepha AG, a profitable, privately held, Swiss-based pharmaceutical company, as well as its subsidiaries.

Mepha specializes in innovative dosage formulations and markets more than 150 products in 50 countries. In 2009, the company reported sales of approximately CHF 400 million. Mepha’s global reach has enabled it to achieve compound annual growth rates in sales of more than 13 percent over the last five years. The company also has a pipeline of about 50 chemical entities planned over the next five years.

For Cephalon, Mepha’s international network presents a timely and attractive channel for global expansion.

“The addition of Mepha will transform our international business overnight, expanding our ability to serve global markets and reach patients in new territories for the first time,” Frank Baldino, Jr., Ph.D., chairman and CEO of Cephalon stated in the press release. “With this deal, we now serve all three types of pharmaceutical markets, proprietary branded, generic and branded generic. We believe this balance will increase the growth and stability of our business.”

Cephalon said the acquisition will diversify its current operations, and offers an accelerated and solid plan to launch current and future products in new markets.

“The acquisition of Mepha will help us to significantly grow our current business and positions us as a more attractive partner for further business development opportunities in the European, Middle East and African regions,” Alain Aragues, executive vice president and president of Cephalon Europe stated.

Per the agreement, Cephalon will pay CHF 622.5 million, or about USD $590 million, for Mepha. The deal is expected to close within 10 to 12 weeks and Cephalon said it expects the acquisition to be accretive to adjusted earnings per share in 2010 and that it will update its 2010 guidance February 11, 2010 when it reports full-year 2009 financial results.