Cephalon, Inc. has signed an agreement to acquire Mepha AG and its subsidiaries for $590 million. The privately-held, Swiss-based Mepha is focused on innovative dosage formulations for both generic and branded products.The acquisition doubles the size of Cephalon’s international business and provides a platform to launch current and future products in developed and emerging markets.

Mepha manufactures and markets more than 120 products in 50 countries and has a pipeline of approximately 50 chemical entities planned for launch during the next five years.

“The addition of Mepha will transform our international business overnight, expanding our ability to serve global markets and reach patients in new territories for the first time,” said Frank Baldino, Jr., Ph.D., chairman and chief executive officer of Cephalon. “With this deal, we now 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.”

Dr. Thomas Villiger, chief executive officer of Mepha Group, added, “Mepha and Cephalon complement each other as far as markets and products are concerned. Mepha’s leading position on the Swiss market will be immediately enhanced by the addition of innovative therapies from Cephalon.”

The transaction, subject to certain closing conditions, is expected to close in the next few months.