CEPH - CEPHALON Message Board

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Biotech / Medical : CEPH - CEPHALON

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To: Icebrg who wrote (54)	8/21/2003 1:00:19 PM
From: Icebrg	Read Replies (1) of 109

CEPH/CIMA It seems that Cephalon will be able to get quite a lot for their money if they manage to haul in CIMA. They have (as Stefaan was kind enough to point out) not only current cash and investment grade securities, but also some long-term papers. All in all these add up to about 9 USD per share. Which means that in reality Cephalon will only pay 17 dollars per share. And for those 17 dollars they will get a company making 1.275 dollars (fully diluted). So, they are proposing to buy CIMA at a trailing p/e of 13,3. Which by itself may very well be a good proposition. Especially as the deal is financed at a marginal capital cost of 0 %. If there in addition are synergies between Cephalon's drug development plans and CIMA's technology portfolio, this looks like quite a sweet deal for Cephalon. Erik

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