Biotech Firm Cephalon 3Q Profit Falls 2.7 Percent

FRAZER, Pa. (AP) — Cephalon Inc. on Tuesday said third-quarter earnings fell from a year ago, when the biotech firm recorded a $66.1 million tax benefit.

Cephalon posted a net income of $102.7 million, or $1.31 per share, compared with $105.6 million, or $1.34, in the same period a year ago.

But excluding the tax gain and other one-time items, adjusted profit came to $126.7 million, or $1.62 per diluted share, compared with $92.9 million, or $1.18, in 2008.

Total revenue rose by 10 percent to $549.4 million, falling short of the $559.1 million expected by analysts surveyed by Thomson Reuters. But Cephalon's adjusted earnings exceeded their average forecast of $1.41 per share.

In the quarter, Cephalon's blockbuster sleep disorder drug Provigil, saw sales slip slightly to $258 million. The drug alone accounts for half of total revenue. While other drug sales fell as well, a few standouts managed to lift net sales.

Nuvigil, the successor to Provigil, which will soon go generic, added $21 million in sales to the quarter. It didn't have any sales in last year's third quarter.