Cephalon Q1 2007 Earnings Call Transcript

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2007-05-01 16:48:10.0

Tags: Cephalon Inc.

Question-and-Answer Session

Operator

(Operator Instructions) We'll go first to Eric Schmidt with Cowen & Company.

Eric Schmidt - Cowen & Co.

Good afternoon. Congratulations on a great quarter. Just looking for some more details around PROVIGIL. I notice you didn't break out the sales in Q1. Could you provide that detail as well as the reason for the decrease in CNS sales guidance for the year?

Frank Baldino

Well thanks for the comments, Eric. I think I'll turn it over to Kevin to give you some color on that. We didn't, I don't think we shared the first quarter breakout. So we're not going to do that but maybe Kevin has a comment about the year performance.

Kevin Buchi

I think the performance of the pain franchise has been stronger than expected, Eric, as you saw, we increased the performance in that area and we just kind of leveled it out. We always viewed our products as being a portfolio product as you know.

We think the overall outlook looks generally the same for the year or within the same general range as we had before. We just tweaked it a little bit to reflect the reality that the pain franchise is doing a little better than expected and weakness maybe in VIVITROL, and that's really it.

Frank Baldino

I think the 15% growth we saw quarter, this quarter over first quarter 2006 is pretty good relative to product that's been on the market for nine years, we're pretty excited about the growth of PROVIGIL. Bob do you want to comment further on that?

Bob Roche

Yeah. I am happy to, Frank. As you mentioned, strong continued growth quarter-on-quarter versus last year and as we've seen in recent years, including in 2006, the really strong seasons for PROVIGIL may be even still to come as we go through the rest of the calendar year.

Having said that, we've got to keep in mind that we have an asset that we've been working effectively with for over nine years now, and it's provided tremendous return over that period of time and we expect it will continue to do so.

Eric Schmidt - Cowen & Co.

So just to be clear, even though this is still your biggest and hopefully one of your most rapidly growing franchises, you're not going to be breaking it out in further quarters either? You'll be combining with capital?

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