Cephalon acquiring Swiss drugmaker Mepha AG

Biotechnology company Cephalon said today that it will buy Swiss-based drug company Mepha AG for an estimated $590 million.

The Frazer, Pa., company said the acquisition of privately held Mepha doubles the size of its international business and positions it for future growth in European, Middle Eastern and African markets. It also allows Cephalon to 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," Frank Baldino Jr., Cephalon chairman and CEO, said in a statement.

The deal is expected to close in the next 10 to 12 weeks, depending on a number of hurdles such as regulatory approval.

Deutsche Bank Securities Inc. served as exclusive financial adviser to Cephalon Inc.

Company shares added 1.22 percent, or 78 cents, to $64.62 shortly after Nasdaq trading opened today.