Cephalon is known for making Nuvigil and Provigil, both used in the treatment of narcolepsy. Teva said in a statement that the two companies would have about $7 billion in combined sales.
“Together, we can create something far better than we can apart,” said Teva’s Americas CEO Bill Marth.
The companies hope their merger will make them leaders in specialty pharmaceuticals, with a strong presence in fields such as central nervous system and respiratory conditions, oncology and pain management.
“By joining forces with Teva, we will benefit from their scale, worldwide reach and operational excellence, allowing us to further pursue our shared goals of delivering new innovative therapies,” said Kevin Buchi, CEO of Cephalon.
Teva has about 40,000 employees worldwide and Cephalon has about 4,000.
The deal is subject to approval by Cephalon shareholders, and is expected to close in the second half of the year.