Valeant Pharmaceutical International's (VRX.TO) $5.7 billion bid for Cephalon Inc (CEPH.O) challenges the industry wisdom that a drugmaker about to lose patent protection for top products does not make an attractive buyout target. That could open the door for takeover proposals for companies such as Endo Pharmaceuticals Holding (ENDP.O) and Forest Laboratories Inc (FRX.N), which face patent threats to top products in the coming years that could seriously hurt their revenues. Since Valeant announced its unsolicited bid on March 29, Endo shares have climbed 16 percent, while shares of larger Forest are up 6 percent as analysts say takeover premiums are building into the stocks.
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