Tech Dealmaker Awards

Hebert

Bentley Pharmaceuticals Inc. had something Israeli generic drug giant Teva Pharmaceutical Industries Ltd. of Israel wanted — a large share of the generic drug market in Spain.

Bentley had become the 7th largest generic drug company in Spain, but its profits were offset by the amount it was spending on drug research in the U.S. This made it difficult for investors to put a clear value on the company.

So Bentley made a move. In October 2007, it spun off its drug delivery operations as CPEX Pharmaceuticals Inc., thereby unlocking the value of the two businesses. At the same time, Bentley, which had 470 workers worldwide, located its headquarters to Exeter, N.H.

Once the CPEX spinoff was complete, Teva moved in to purchase Bentley on March 2008 for $360 million cash, or $14.82 a share. Bentley will continue to operate in Spain under the Teva name.

“As a result of the spinoff, Bentley’s generic business became much more appealing to someone looking to expand their generic line,” said Bob Hebert, CFO of CPEX. “We also knew the generic drug market was consolidating, and it would be difficult to compete once bigger companies came and took it over.”

CPEX, with 15 employees, focuses its development work primarily on Nasulin, an intranasal insulin product candidate.

— Amy Castor

Category

Life Sciences

The Deal

Teva Pharmaceutical Industries purchased Bentley Pharmaceuticals Inc. for $360 million in cash. Closed in July 2008

Key Executives

James R. Murphy, CEO, Bentley, and chairman, CPEX Pharmaceuticals; Richard Lindsay, CFO, Bentley

Deal advisers

Financial: Bentley — Deutsche Bank
Legal: Bentley — Skadden Arps Slate Meagher & Flom LLP; Teva — Willkie Farr & Gallagher

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