A deal has been signed between the boards of Teva Pharmaceutical Industries Ltd. and Cephalon Inc, based in Frazer, Pennsylvania. Teva will purchase Cephalon for $6.8 billion. Petah Tikvah, Israel-based Teva will pay an amount of $81.50 a share in cash, which is total enterprise value of nearly $6.8 billion to Cephalon.

Valeant has asked Cephalon for the bid of $73 a share, but Cephalon rejected the offer given by them. In Nasdaq Stock Market, Cephalon has increased by 39 cents, which is 0.5% on April 29. The company has posted revenue of $2.81 billion in 2010.

The medicine for narcolepsy available in the Cephalon, Provigil has generated revenue of $1.12 billion in 2010. The company is also testing the medicines such as lupus and pain.

The deal has been approved by the both companies, Teva and Cephalon. After combining the companies will have annual sales of $7 billion.

The Teva is expecting the savings of almost $500 million in annual cost of the sale. The Teva will also expand itself in areas such as treatment of oncology and respiratory disease.

The Head of the Teva, Shlomo Yanai, asserted, “Our significantly broader portfolio will permit marketing and sales synergies and enhance profitability”.