FRAZER, Pa., Feb. 12 /PRNewswire-FirstCall/ -- Cephalon, Inc. today reported 2007 sales of $1.727 billion, compared to sales of $1.720 billion for 2006, exceeding the company's previously issued guidance. Basic loss per common share for the full year 2007 was $2.88. Excluding the previously announced settlement reserve, amortization expense and certain other items, basic adjusted income per common share for the full year was $4.64, which compares to $5.22 for 2006 and exceeds the high end of the company's earnings guidance range of $4.45 to $4.55.
2007 central nervous system (CNS) franchise sales increased 16 percent to $909.4 million compared to 2006 and the pain franchise reported strong sales of $512.6 million, a decrease of only 22 percent despite a full year of generic competition to ACTIQ(R) (oral transmucosal fentanyl citrate) [C-II]. Sales of other products increased 15 percent to $305.3 million.
"We delivered strong performance across all aspects of our business in 2007. We launched AMRIX, filed three NDAs, introduced three new Phase 1 programs, and delivered greater sales and earnings than expected," said Frank Baldino, Jr., Ph.D., Chairman and CEO. "We believe that 2008 will mark the beginning of a new phase of growth for the company with a full year of AMRIX sales, the potential for approval of TREANDA and expanded indications for FENTORA, and continued progress on the clinical development plan for NUVIGIL. In fact, the NUVIGIL program is already off to a great start with promising results from our first Phase 2 study in the treatment of schizophrenia."
The company is reiterating its guidance for 2008 total sales of $1.80 - $1.85 billion, adjusted net income of $344 - $351 million and its basic adjusted income per common share guidance of $5.10 - $5.20.
Cephalon is introducing first quarter 2008 sales guidance of $435 - $445 million, adjusted net income guidance of $67.7 - $74.5 million and basic adjusted income per common share guidance of $1.00 - $1.10.
Basic adjusted income per common share guidance for both the first quarter 2008 and full-year 2008 is reconciled below and is subject to the assumptions set forth therein.
Cephalon's management will discuss the company's fourth quarter and full year 2007 performance in a conference call with investors beginning at 5:00 p.m. U.S. EST on Tuesday, February 12, 2008. To participate in the conference call, dial +1-913-312-0669 and refer to conference code number 4647168. Investors can listen to the call live by logging on to the company's website at www.cephalon.com and clicking on "Investor Information," then "Webcast." The conference call will be archived and available to investors for one week after the call.
About Cephalon, Inc.
Founded in 1987, Cephalon, Inc. is an international biopharmaceutical company dedicated to the discovery, development and marketing of innovative products in four core therapeutic areas: central nervous system, pain, oncology and addiction. A member of the Fortune 1000, Cephalon currently employs close to 3,000 people in the United States and Europe. U.S. sites include the company's headquarters in Frazer, Pennsylvania, and offices, laboratories or manufacturing facilities in West Chester, Pennsylvania, Salt Lake City, Utah, and suburban Minneapolis, Minnesota. Cephalon's European headquarters are located in Maisons-Alfort, France.
The company's proprietary products in the United States include: PROVIGIL(R) (modafinil) Tablets [C-IV], FENTORA(R) (fentanyl buccal tablet) [C-II], TRISENOX(R) (arsenic trioxide), AMRIX(R) (cyclobenzaprine hydrochloride extended-release capsules), VIVITROL(R) (naltrexone for extended-release injectable suspension), GABITRIL(R) (tiagabine hydrochloride), and ACTIQ(R). The company also markets numerous products internationally. Full prescribing information on its U.S. products is available at http://www.cephalon.com or by calling 1-800-896-5855.
In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. Forward-looking statements provide Cephalon's current expectations or forecasts of future events. These may include statements regarding anticipated scientific progress on its research programs; development of potential pharmaceutical products including NUVIGIL for the treatment of schizophrenia; interpretation of clinical results; prospects for regulatory approval, including with respect to TREANDA and NUVIGIL; manufacturing development and capabilities; market prospects for its products; sales, adjusted net income and basic adjusted income per common share guidance for the first quarter and full-year 2008; and other statements regarding matters that are not historical facts. You may identify some of these forward-looking statements by the use of words in the statements such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe" or other words and terms of similar meaning. Cephalon's performance and financial results could differ materially from those reflected in these forward-looking statements due to general financial, economic, regulatory and political conditions affecting the biotechnology and pharmaceutical industries as well as more specific risks and uncertainties facing Cephalon such as those set forth in its reports on Form 8-K, 10-Q and 10-K filed with the U.S. Securities and Exchange Commission. Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Therefore, you should not rely on any such factors or forward- looking statements. Furthermore, Cephalon does not intend to update publicly any forward-looking statement, except as required by law. The Private Securities Litigation Reform Act of 1995 permits this discussion.
This press release and/or the financial results attached to this press release include "Adjusted Net Income," "Basic Adjusted Income per Common Share," "Adjusted Net Income Guidance, "Basic Adjusted Income per Common Share Guidance," and "Diluted Adjusted Income Per Common Share," amounts that are considered "non-GAAP financial measures" under SEC rules. As required, we have provided reconciliations of these measures. Additional required information is located in the Form 8-K furnished to the SEC in connection with this press release.
CONTACT: Media, Sheryl Williams, +1-610-738-6493, swilliam@cephalon.com;
Investors, Robert (Chip) Merritt, +1-610-738-6376, cmerritt@cephalon.com,
both of Cephalon, Inc.
Web site: http://www.cephalon.com//
Company News On-Call: http://www.prnewswire.com/comp/134563.html /
