Subscribe to RSSCephalon Ests Up on Guidance – Analyst Blog
Earnings estimates for Cephalon, Inc. ( CEPH ) have gone up significantly following the issuance of a better-than-expected guidance by the company. Cephalon exited 2009 on a strong note with both fourth-quarter and full-year earnings exceeding expectations. Cephalon reported fourth-quarter earnings of $1.66 per share, up 13.7%, and full-year earnings of $6.03, up 25%. Top-line performance also remained strong with fourth quarter revenues increasing 6.5% to $575.1 million, and full year revenues increasing 11% to $2.2 billion. Revenues were primarily driven by contributions from the central nervous system (CNS) and oncology franchises. Guidance and Earnings Estimate Revisions Cephalon’s guidance for 2010, which was re-issued following the company’s decision to acquire generic company Mepha, was well above expectations and resulted in several analysts raising their earnings estimates for the stock. Earnings estimates for 2010 have gone up by 27 cents over the past 30 days to $6.51 with 19 of 21 analysts following the stock raising their estimates. Only 2 analysts moved in the opposite direction during this period. The Mepha acquisition, which is scheduled to close on Apr 1, is expected to be accretive to earnings immediately. This acquisition will not only allow Cephalon to enter the generics drug market, it will also allow the company to expand its footprints in ex-US territories including emerging markets which represent significant opportunity for growth. Cephalon expects total sales to increase 19% – 23% to $2.61 – $2.69 billion in 2010. Revenues should be boosted by strong conversion of the CNS franchise and continued robust performance of the oncology franchise. CNS franchise sales are expected in the range of $1.18 -$1.22 billion in 2010. Cephalon has undertaken several measures to ensure the smooth transition of patients from Provigil to Nuvigil. In addition to being priced at a significant discount to Provigil, a co-pay assistance program has also been introduced to help reduce the financial burden on patients. Cephalon has also launched a new marketing campaign that is focusing …
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Cephalon Ests Up on Guidance – Analyst Blog
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