Cephalon Inc Posts Slight Profits for Third Quarter, Raises Full-Year Earnings Forecast

Biotech company Cephalon Inc posted lower-than-expected third-quarter profits, but its leukemia drug Treanda, approved in March, showed a sharp rise in sales.

The company also projected 2009 adjusted net income growth of 27 percent over its revised 2008 forecast, and its shares rose after the posting.

Excluding items, Cephalon earned $1.18 per share for the quarter. Cephalon's leukemia drug, Treanda had sales of $ 24.6 million dollars, a 71 percent increase over its first quarter on the market.

The Frazer, Pennsylvania-based company posted a net profit of $112 million dollars, or $1.42 per share, compared with a net loss of $ 306.8 million dollars, or $ 4.58 per share, a year ago.

Sales of Cephalon's flagship sleep disorder drug, Provigil, rose 19 percent to $ 259.2 million dollars for the quarter, while its cancer pain drug, Actiq, faced with generic competition, saw sales plunge 36 percent to $ 35.8 million dollars.

Total revenue rose 13.7 percent to $ 498.5 million dollars, just shy of estimates of $ 500 million dollars.

Cephalon boosted its full-year adjusted earnings forecast by 10 cents to $ 5.20 to $ 5.30 per basic share, and now expects 2008 sales of $ 1.90 billion to $ 1.94 billion dollars, up from its prior view of $ 1.86 billion to $1.91 billion dollars.