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Footprint for growth

Investors often worry that when companies add low-margin products to a high-margin portfolio, earnings will suffer. Cephalon Inc. Chairman and CEO Frank Baldino says the company's proposed acquisition of generics company Mepha AG should allow the biotech to continue to deliver EPS growth at its historical rate, while also giving it the geographic footprint to compete for partnering deals.

"Cephalon has been generating double-digit bottom line growth over the years, and our European business, which included branded generics, helped to drive that growth. Mepha is more of the same in that respect,"

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