Cephalon 1Q Net Nearly Doubles Amid Gain As Sales Surge

  DOW JONES NEWSWIRES 
 

Cephalon Inc.'s (CEPH) first-quarter profit nearly doubled as sales surged and a gain related to the fair value of investments boosted the bottom line.

The drug maker has benefited from strong sales, especially of its central-nervous system and oncology drugs, and it has launched products and expanded via acquisitions to confront pressure from generic competition. Monday, it agreed to be acquired by Teva Pharmaceutical Industries Ltd. (TEVA) for $6.8 billion, which topped a previous hostile bid from Valeant Pharmaceuticals International Inc. (VRX, VRX.T).

Cephalon reported a profit of $211.1 million, or $2.64 a share, up from $110.6 million, or $1.35 a share, a year earlier. Excluding items such as a change in the fair value of investments and charges from acquired research and development, basic earnings per share rose to $2.09 from $1.92. Revenue jumped 25% to $745.1 million.

In February, the company forecast basic adjusted earnings per share of $1.90 to $2.10 on $725 million to $755 million in sales.

Sales of central-nervous-system drugs, the largest top-line contributor, rose 7%, while pain and oncology saw respective increases of 13% and 35%.

-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; [e-mail]