Updated from 5:50 p.m. EDT
said Thursday that second-quarter sales jumped 58% over the same period last year, prompting the company to raise its full-year guidance.
For the three months ended June 30, revenue climbed to $440.1 million from $286 million in the same period a year ago.
Cephalon took some of the surprise out of the strong second quarter by announcing last week that sales would top its guidance and analysts' estimates. The Frazer, Pa., company also increased its full-year its earnings forecast to a range of $4.10 to $4.30 a share, excluding one-time items. The previous EPS prediction was $3.80 to $4.
The company's projections exclude the dilutive impact of employee stock options and convertible notes. Thus, the company identifies its profits as basic earnings per share rather than the more commonly used and widely accepted diluted earnings per share. Cephalon says basic earnings per share offers a better measure of its performance.
Cephalon also raised its full-year sales guidance by $50 million to a range of $1.53 billion to $1.58 billion.
For the third quarter, Cephalon anticipates a basic EPS of $1.25 to $1.35 and sales of $425 million to $440 million.
Before items, the company earned $97.6 million, or $1.61 a basic share, in the most recent quarter. On a diluted basis, the company earned $1.46 a share. When calculated using generally accepted accounting principles, Cephalon earned $55.4 million, or 83 cents a diluted share, compared with a loss of $249 million, or $4.29 a share, a year ago.
"Both sales and earnings for the second quarter were exceptional, in part due to our decision earlier this year to reinvigorate Provigil marketing activity," said Frank Baldino Jr., Cepahlon's chairman and CEO. "We also made significant strides in executing our long-term diversification strategy, with the launch of Vivitrol for treating alcohol dependence."
Provigil is a sleep disorders drug. Cephalon markets Vivitrol in collaboration with its developer
. The company had been selling Provigil by itself, but it recently signed a co-promotion deal with Japan's
Cephalon's full-year forecast comes with an assortment of assumptions: It assumes its experimental sleep-disorders drug Nuvigil will be approved by the FDA and launched during the second half of the year, and it assumes the cancer-pain drug Fentora will get final FDA approval and be launched early in the fourth quarter.
Both drugs have received conditional approval from the FDA, meaning the agency wants more information.
received a tentative OK in May . At the time, Cephalon said the major issue was what the drug label would say. But Nuvigil's path to approval appears to have become tangled with the FDA's review of another drug, Sparlon, for attention deficit hyperactivity disorder, or ADHD.
Sparlon has been the subject of several delays. In March, an FDA advisory panel recommended that Cephalon
conduct more safety tests, saying it appeared that one patient out of 933 people tested had contracted a rare, dangerous skin disease called Stevens-Johnson Syndrome.
Cephalon has sent data to the agency saying the patient didn't suffer from the dangerous side effect. "We think we've given them convincing, clear data," said Paul Blake, executive vice president for worldwide medical and regulatory operations.
The FDA is expected to rule on Sparlon on Aug. 22. If the FDA approves the drug, company executives expect it to reach the market this year, aided by marketing agreement with
Johnson & Johnson
. JNJ sells the ADHD drug Concerta.
The cancer-pain medication Fentora received a
conditional FDA endorsement on June 30, and company executives predicted the FDA would grant final approval during the third quarter.
Cephalon's financial results were issued after markets had closed. In regular trading, the stock lost 35 cents to close at $65.55. After hours, it recaptured 18 cents.