Disappointing Quarter from Cephalon - Analyst Blog
03 Août 2011 - 4:21PM
Zacks
Cephalon Inc. (CEPH) delivered second quarter
earnings of $1.62 per share, missing the Zacks Consensus Estimate
of $2.08 by a huge margin. Earnings fell 21% from the year-ago
period. Second quarter revenues, which increased 1.6% to $738.3
million, were way below the Zacks Consensus Estimate of $765
million.
The Quarter in Detail
Second quarter revenues consisted of $730.1 million in product
sales (up 2.5%) and $8.2 million in other revenues. Central nervous
system (CNS) franchise sales, which came in at $332.3 million,
declined 5%.
While Provigil sales declined 12% to $251.1 million, Nuvigil
sales increased 43% to $58.6 million. Provigil unit sales declined
partly due to the transition of Cephalon’s marketing support from
Provigil to Nuvigil.
Cephalon continues to focus on shift-work disorder, a market
segment that offers significant opportunity for growth. Cephalon
released positive shift work disorder data that showed that
patients treated with Nuvigil experienced a statistically
significant difference in improvement in overall clinical condition
related to late-shift sleepiness compared to placebo.
The positive data should help Cephalon in its efforts to promote
Nuvigil in the shift-work disorder segment. Cephalon is also
looking to drive Nuvigil sales by gaining approval for additional
indications like bipolar depression.
The oncology franchise posted sales of $158.8 million (up 22%).
Oncology drug Treanda continued to perform well, with sales coming
in at $125.8 million, up 26%. Treanda benefited from a price
increase in Feb. 2011. Growing acceptance among hematologists
should boost sales further. Moreover, expansion into the first-line
treatment of indolent non-Hodgkin's lymphoma should help boost
long-term growth of the product.
Second quarter pain franchise sales increased 4% to $140.6
million. The introduction of Fentora into several European
territories, increases in generic pain sales in Europe and US price
increases helped drive growth in the pain franchise. Amrix sales
declined significantly following the loss of exclusivity in the US
in May 2011.
Teva to Acquire Cephalon
Cephalon is currently working with authorities in the US and EU
for the completion of the transaction with Teva
Pharmaceutical Industries Ltd. (TEVA). On May 2, 2011,
Teva Pharmaceutical Industries Ltd. had announced that it has
entered into a definitive agreement for the acquisition of Cephalon
for $81.50 per share in cash or $6.8 billion. The acquisition is
scheduled to close in October 2011.
CEPHALON INC (CEPH): Free Stock Analysis Report
TEVA PHARM ADR (TEVA): Free Stock Analysis Report
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