Financials:
Tuesday August 10, 8:31 am Eastern Time
Company Press Release
SOURCE: Cephalon, Inc.
Cephalon Reports Second Quarter Financial Results
WEST CHESTER, Pa., Aug. 10 /PRNewswire/ -- Cephalon, Inc. (Nasdaq: CEPH - news) today
reported its financial and operating results for the quarter ended June 30, 1999.
Cephalon's revenues increased by $7.3 million to $10.7 million for the three months ended June 30, 1999, as a result of $5.5 million in
sales of PROVIGIL® (modafinil) Tablets (C-IV) and $2.8 million recognized under a research and development collaboration with H.
Lundbeck A/S. Revenues during the same period in 1998 were $3.4 million.
The company's loss was reduced to $11.5 million, or $0.40 per share, for the quarter ended June 30, 1999, from a loss of $12.6 million,
or $0.44 per share, for the same period in 1998.
For the three months ended June 30, 1999, research and development expenses were essentially unchanged at $10.2 million,
compared to $10.4 million in the second quarter of 1998. Selling, general and administrative expenses for the second quarter of 1999
increased to $10.2 million, from $6.7 million in the second quarter of 1998, due primarily to marketing expenses associated with the
commercial launch of PROVIGIL, and an increase in the size of the company's sales force to fully support both PROVIGIL and the
recent collaboration with Abbott Laboratories to market Gabitril® (tiagabine hydrochloride).
Cephalon incurred net interest expense of $1.3 million for the three months ended June 30, 1999, compared to net interest income of
$1.1 million for the same period in 1998. This change resulted from recognition of interest expense related to the February 1999
private placement of $30 million revenue-sharing notes.
For the six months ended June 30, 1999, the company reported a loss of $31.4 million, or $1.09 per share, which includes a one-time
charge to first quarter earnings of $4.3 million associated with the securities litigation filed in 1996, compared to a loss of $27.3 million,
or $0.97 per share, for the same period in 1998.
As of June 30, 1999, Cephalon had approximately $85.6 million in cash, cash equivalents and investments.
Cephalon, Inc., headquartered in West Chester, PA, is an international biopharmaceutical company dedicated to the discovery,
development and marketing of products to treat neurological disorders, sleep disorders and cancer.
In addition to historical facts or statements of current condition, this press release may contain forward-looking statements.
Forward-looking statements provide the company's current expectations or forecasts of future events. These may include statements
regarding anticipated scientific progress on its research programs, development of potential pharmaceutical products, prospects for
regulatory approval, manufacturing development and capabilities, market prospects for its products, sales and earnings projections, and
other statements regarding matters that are not historical facts. You may identify some of these forward-looking statements by the
use of words in the statements such as ''anticipate,'' ''estimate,'' ''expect,'' ''project,'' ''intend,'' ''plan,'' ''believe'' or other words and
terms of similar meaning. The company's performance and financial results could differ materially from those reflected in these
forward-looking statements due to general financial, economic, regulatory and political conditions affecting the biotechnology and
pharmaceutical industries as well as more specific risks and uncertainties such as those set forth below and in its reports on Form
8-K, 10-Q and 10-K filed with the U.S. Securities and Exchange Commission. Given these risks and uncertainties, any or all of these
forward-looking statements may prove to be incorrect. Therefore, you are cautioned not to place too much reliance on any such
factors or forward-looking statements. Furthermore, Cephalon does not intend (and it is not obligated) to update publicly any
forward-looking statements, whether as a result of new information, future events or otherwise. This discussion is permitted by the
Private Securities Litigation Reform Act of 1995.
NOTE: Cephalon's press releases are posted on the Internet at the company's Web site at cephalon.com. They are also
available by fax 24 hours a day at no charge by calling PR Newswire's Company News On-Call at 800-758-5804, extension 134563.
Cephalon, Inc. and Subsidiaries
Consolidated Statements of Operations
(Amounts in Thousands, Except per Share)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenues:
Product sales $5,522 $172 $7,252 $231
Other revenues 5,227 3,240 7,727 6,749
10,749 3,412 14,979 6,980
Costs and Expenses:
Cost of product sales 651 -- 839 --
Research and development 10,180 10,353 20,152 22,327
Selling, general and
administrative 10,166 6,727 23,780 13,896
20,997 17,080 44,771 36,223
Loss from operations (10,248) (13,668) (29,792) (29,243)
Interest (expense) income, net (1,253) 1,053 (1,650) 1,969
Loss $(11,501) $(12,615) $(31,442) $(27,274)
Basic and diluted loss per share $(0.40) $(0.44) $(1.09) $(0.97)
Weighted average number
of shares outstanding 28,998 28,514 28,880 28,159
Condensed Consolidated Balance Sheets
(Amounts in Thousands)
(Unaudited)
June 30, December 31,
1999 1998
Assets
Cash, cash equivalents and investments $85,555 $67,346
Other current assets 8,785 5,248
Property and equipment, net 19,745 20,505
Other assets 3,269 1,574
$117,354 $94,673
Liabilities and stockholders' equity
Current liabilities $24,702 $16,856
Debt, including current portion 40,362 16,720
Other liabilities 3,851 3,495
Stockholders' equity 48,439 57,602
$117,354 $94,673
SOURCE: Cephalon, Inc.
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