December 22, 2005 -- Cephalon moved up $3.56 or 6.6% after announcing that it settled with Ranbaxy, a generic drug manufacturer that was seeking to offer a generic equivalent to Provigil, a drug that treats excessive daytime sleepiness. Four generic companies have sought to break Cephalon’s patent, which runs to 2016. Earlier, Teva settled with the company in an agreement that was written along similar lines. Cephalon must still come to terms with Mylan Labs and Barr Pharma. The deal gives Cephalon good earnings visibility (Provigil produces $500 million in revenue), and Cephalon has 4 big product approvals waiting in the wings. We take a look...
