Company Also Announces Agreement in Principle with U.S. Attorney's Office;
Earnings Exceed Company Guidance; Company Again Increases 2007 Earnings Guidance and Introduces 2008 Guidance
FRAZER, Pa., Nov. 8 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) today reported third quarter 2007 sales of $428.7 million, compared to adjusted sales of $457.2 million for the third quarter of 2006 and within the company's previously issued guidance. Basic loss per common share for the third quarter of 2007 was $4.58. Excluding the settlement reserve increase, amortization expense and certain other items, basic adjusted income per common share during the quarter was $1.08, which compares to $1.71 for the third quarter of 2006 and exceeds the high end of the company's guidance range of $0.85 to $0.95.
During the third quarter, central nervous system (CNS) franchise sales increased 9 percent to $230.9 million and the pain franchise reported strong sales of $121.8 million, a decrease of only 33 percent despite generic competition to ACTIQ(R). Sales of other products were $76.0 million, an increase of 20 percent over the same period last year.
The company also announced that it has reached an agreement in
principle with the U.S. Attorney's Office in Philadelphia and the U.S.
Department of Justice with respect to the previously disclosed
investigation of the company's sales and marketing practices. The company
expects to pay $425 million as part of a comprehensive settlement of
Federal and related state Medicaid claims. The company has increased its
existing financial reserves for this matter accordingly. In addition, the
company will agree to a single misdemeanor violation of the U.S. Food,
Drug, and Cosmetic Act and will enter into a corporate integrity agreement
with the Office of Inspector General of the U.S. Department of Health and
Human Services. The terms of the settlement are subject to the final
negotiation and execution o
|SOURCE Cephalon, Inc.|
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