Cephalon lifts outlook, sees bigger 2009 profit

FRAZER, Pa. - Drugmaker Cephalon Inc. raised its 2008 profit and sales outlook Tuesday, anticipating stronger sales of drugs that treat central nervous system disorders, and forecast a larger-than-expected profit for 2009.

Cephalon said it expects to earn between $5.20 and $5.30 per share in 2008, up from $5.10 to $5.20 per share. It raised its revenue forecast to a range of $1.9 billion to $1.94 billion from $1.86 billion to $1.91 billion, with most of the gains coming from better expected sales of nervous system disorder drugs.

Thomson Reuters reports that analysts, on average, expect $4.66 per share on $1.95 billion in revenue.

The company now expects $1.02 billion to $1.04 billion in revenue from CNS drugs, and predicted better sales of cancer drugs as well. Cephalon trimmed its expectations for pain drugs and other products.

In 2009, the company said it expects a profit of $6.50 to $6.60 per share, on $2.175 billion to $2.225 billion in sales. That estimate includes $1.15 billion to $1.18 billion in CNS sales, $535 million to $560 million in pain drug sales, and cancer treatment sales of $265 million to $280 million. Other product revenue was estimated at $180 million to $205 million.

Analysts expect $5.45 per share and $2.22 billion in sales, on average.

Cephalon shares gained $1.19, or 1.7 percent, to $69.49 in after-hours trading when the outlook was issued. They finished at $68.30, up $3.52, or 5.4 percent in regular trading Tuesday.

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