Valeant Pharmaceuticals makes hostile bid for Cephalon

Valeant Pharmaceuticals International Inc., a Canadian drugmaker focused on neurology and dermatology, made a hostile bid to buy Cephalon Inc. for about $5.7 billion, or $73 a share in cash.

The offer is a 24% premium to Tuesday’s closing price of $58.75 for Cephalon. The Frazer, Pa., company’s shares jumped to $72.89 after the close of regular trading.

Valeant will attempt to replace Cephalon’s current board of directors with its own nominees after making several private approaches to the company, which showed “unwillingness to engage in discussions in a timely manner,” Valeant said Tuesday.

Cephalon in December appointed Kevin Buchi chief executive after the death of company founder Frank Baldino that month. Baldino, 57, was chairman and CEO of the maker of sleep and pain drugs, which reported 2010 revenue of $2.81 billion.

“We have taken a close look at Cephalon’s business and believe we put forward a very compelling offer for Cephalon’s stockholders,” Valeant Chief Executive J. Michael Pearson said. “We are also committed to trying to find additional value if we are allowed to conduct due diligence.”

There have been 219 acquisitions of U.S. pharmaceutical companies in the last 12 months, according to Bloomberg data.

Valeant moved its headquarters from Aliso Viejo to Mississauga, Ontario, after being taken over last year by Biovail Corp. of Canada, which formed a new company with the Valeant name.