Cephalon

In 1987, three scientists from DuPont—Frank Baldino, Jr., Michael Lewis, and James C. Kauer—ventured out to start a biopharmaceutical company. They named it Cephalon, from the Greek word for 'head,' signaling their focus on treatments for neurodegenerative diseases. With no initial products, their primary asset was scientific expertise, which they leveraged to secure research grants and contracts to fund early operations. In 1991, Cephalon went public with a $59.4 million IPO. The company's trajectory shifted when it acquired the rights to modafinil, which it marketed as Provigil. This drug, used to treat sleep disorders like narcolepsy, became a blockbuster, with sales reaching nearly a billion dollars by 2008. This success fueled a new strategy: growth through acquisition. Cephalon expanded its portfolio by purchasing other companies and licensing compounds, moving into oncology and pain management. By 2010, the company had grown to generate $2.8 billion in annual sales. A significant chapter concluded in 2011 when Teva Pharmaceutical Industries announced its acquisition of Cephalon for $6.8 billion. The deal, completed in October of that year, marked the end of Cephalon's journey as an independent company but solidified its legacy in building a diversified specialty pharmaceutical business.