Cephalon Announces 1997 Financial Results
WEST CHESTER, Pa., Feb. 24 /PRNewswire/ -- Cephalon, Inc. (Nasdaq: CEPH - news) today
reported a loss of $60.4 million, or $2.36 per share, for the year ended December 31, 1997,
compared to a loss of $53.3 million, or $2.19 per share, reported for 1996. For the quarter ended
December 31, 1997, the company reported a loss of $14.1 million, or $.52 per share, compared
to a loss of $4.9 million, or $.20 per share for the same period in 1996.
The results for the 1996 fourth quarter and year ended December 31, 1997 reflect approximately
$4 million in milestone and product acquisition payments to other companies which are described
below. The results for the fourth quarter and year ended December 31, 1996 include a one-time
$9.8 million gain on the sale of the company's Beltsville, Maryland pharmaceutical manufacturing
facility.
Revenues for 1997 were $23.1 million for the year and $9.0 for the quarter ended December 31,
1997, compared to $21.4 million for the year and $10.0 for the quarter ended December 31,
1996. Revenues in 1997 resulted principally from research and other payments under collaborative
agreements with TAP Holdings, Chiron Corp. [Nasdaq:CHIR - news], SmithKline Beecham and
Kyowa Hakko Kogyo Co., and also included sales and marketing activities under product
promotion agreements with Bristol-Myers Squibb Co. [NYSE:BMY - news] and Medtronic, Inc.
Cephalon incurred operating expenses of $88.3 million in 1997 compared to $90.7 million in
1996. Fourth quarter 1997 operating expenses were $24.3 million compared to $26.5 million for
the 1996 fourth quarter. The decrease in operating expenses in 1997 resulted primarily from the
cessation in 1996 of operations at the company's Beltsville manufacturing facility and the
completion of certain clinical studies.
Research and development expenses totaled $13.7 million during the fourth quarter and $51.6
million for 1997, compared to $16.4 million for the fourth quarter and $62.1 million for the year in
1996. Fourth quarter 1997 research and development expenses include $2 million in milestone
fees under the company's license agreement with Laboratoire L. Lafon to develop and market
PROVIGIL(R) (modafinil). The expenses for 1997 also include $2.4 million for the purchase of
bulk modafinil inventory from Laboratoire L. Lafon during the 1997 second quarter.
Selling, general and administrative expenses totaled $10.6 million during the fourth quarter and
$36.7 million for the year, compared to $10.1 million for the quarter and $28.6 million for the year
in 1996. The increases in expenses for the fourth quarter and the year ended December 31, 1997
resulted primarily from expansion of marketing and sales activities in the United States and Europe,
preparations for commercialization of PROVIGIL, and expenses of $2.1 million to Laboratoire
Aguettant S.A. for acquisition of rights to market Apokinon(R) (apomorphine hydrochloride) in
France for the treatment of Parkinson's disease.
As of December 31, 1997, Cephalon had approximately $119 million in cash, cash equivalents
and investments.
Cephalon, Inc., headquartered in West Chester, PA, is an international biopharmaceutical
company that discovers, develops and markets products to treat neurological disorders.
This news release may contain forward-looking statements that involve risks and uncertainties. A
full discussion of Cephalon's operations and financial condition, including factors that may affect the
company's business and future prospects, is contained in documents the company files with the
SEC, such as form 10-Q and 10-K reports. These documents identify important factors that could
cause the company's actual performance to differ from current expectations.
NOTE: Cephalon's press releases are 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. They we also posted
on the Internet at prnewswire.com.
CEPHALON, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Amounts in Thousands, Except per Share)
Three Months Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
Contract revenues $9,024 $9,959 $23,140 $21,366
Expenses:
Research and development 13,730 16,395 51,587 62,096
Selling, general and
administrative 10,607 10,077 36,744 28,605
24,337 26,472 88,331 90,701
Loss from operations (15,313) (16,513) (65,191) (69,335)
Interest income, net 1,255 1,782 4,772 6,205
Gain on sale of assets -- 9,845 -- 9,845
Loss $(14,058) $(4,886) $(60,419) $(53,285)
Basic and dilutive loss per share $(0.52) $(0.20) $(2.36) $(2.19)
Weighted average common shares
outstanding 26,807 24,534 25,638 24,319
Condensed Consolidated Balance Sheets
(Amounts in Thousands)
December 31, December 31,
1997 1996
Assets
Cash, cash equivalents and investments $119,471 $146,848
Other current assets 7,680 7,696
Property and equipment, net 21,853 22,086
Other assets 2,204 1,261
$151,208 $177,891
Liabilities & stockholders' equity
Current liabilities $18,799 $16,424
Debt, including current portion 29,321 22,138
Other liabilities 2,750 2,003
Stockholders' equity 100,338 137,326
$151,208 $177,891
SOURCE: Cephalon, Inc. |
