Cephalon Inc. (Nasdaq: CEPH), which Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) is acquiring reported lower profits on higher revenue for the second quarter of 2011, and missed the analysts' revenue and earnings per share forecasts.
Revenue rose 2% to $730.1 million for the second quarter from $712.4 million for the corresponding quarter of 2010. The company missed the analysts' revenue consensus of $764.4 million.
GAAP-based net profit fell 14% to $142.6 million ($1.86 per share) for the second quarter from $165.2 million ($2.20 per share) for the corresponding quarter. However, non-GAAP net profit rose to $118.2 million ($1.54 per share) from $89.1 million. The company missed the analysts' earnings per share of consensus of $2.07 by $0.53.
Central nervous system (CNS) franchise net sales fell 5% to $332.3 million for the second quarter from the corresponding quarter, and pain franchise reported net sales fell 4% to $140.6 million, but oncology franchise net sales rose 22% to $158.8 million. The company attributed the increase to strong net sales of Trenda to $125.8 million. Sales of other products remained relatively constant at $98.5 million.
Cash flow from operations totaled $74.2 million in the second quarter, bringing the company's cash and cash equivalents to $997.5 million at the end of June.
Cepahlon CEO Kevin Buchi said, "We continue to work with both US and European authorities to obtain all necessary regulatory approvals in order to close the transaction with Teva."
Last month, Cephalon's shareholders approved Teva's takeover offer at $81.50 per share, for a total of $6.8 billion.
Cephalon's share price fell 0.2% yesterday to $79.95, giving a market cap of $6.09 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 3, 2011
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