Cephalon takeover by Teva approved by European Commission

Cephalon's acquisition by Teva has received approval to go ahead from the European Commission.

The approval by the European regulatory organisation means that the two firms now have all the relevant approvals needed to close the deal, with the finalisation of terms expected to take place in the coming days.

As part of the European Commission's decision, Teva has been requested to divest Cephalon's marketing authorisation of the generic product modafinil in France.

This arrangement will include granting the purchaser a number of additional rights that would affect the entire European Economic Area, including an agreement not to pursue any legal actions as of October 2012.

Cephalon agreed to be acquired by Teva in May 2011, having rejected overtures from Valeant Pharmaceuticals earlier in the year.

The transaction has been valued at $6.8 billion (4.3 billion pounds) and will create a new powerhouse in the specialty pharmaceuticals sector, with areas of expertise including oncology, central nervous system and respiratory conditions.