Cephalon: Press Releases

Cephalon Concludes All Outstanding Federal and State Government Investigations into the Company's Sales and Promotional Practices

Mon, 29 Sep 2008 00:00:00 -0400

Company Finalizes Previously Announced Agreement with U.S. Attorney's Office for Eastern District of Pennsylvania and U.S. Department of Justice

FRAZER, Pa., Sept. 29 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) announced today it has finalized a previously announced agreement in principle with the U.S. Attorney's Office for the Eastern District of Pennsylvania, the U.S. Department of Justice and various other federal agencies. The Company also reached separate agreements with the Attorneys General of the states of Connecticut and Massachusetts to settle related investigations into the company's sales and promotional practices. The initial investigations began in 2004 and involved three of the company's nine proprietary products in the United States -- Actiq(R) (oral transmucosal fentanyl citrate) [C-II], Provigil(R) (modafinil) Tablets [C-IV], and GabitRil(R) (tiagabine hydrochloride). Cephalon fully cooperated with all governmental entities throughout these investigations.

Under the previously disclosed terms of the federal settlement, Cephalon will pay the $425 million reserved in 2007 plus an estimated $12 million in accrued interest expense, plead guilty to a single misdemeanor violation of the U. S. Food, Drug, and Cosmetic Act, and enter into a five-year Corporate Integrity Agreement (CIA) with the Office of the Inspector General of the U.S. Department of Health and Human Services. The guilty plea is subject to approval by the U.S. District Court for the Eastern District of Pennsylvania.

"We are pleased to have these long-standing matters behind us, while preserving our ability to participate in all federal and state health care programs, thereby maintaining the access of patients in those programs to our medications," stated Jerry Pappert, Executive Vice President and General Counsel, and a former Attorney General of the Commonwealth of Pennsylvania.

"We believe our existing compliance policies and procedures already address the majority of the requirements outlined in the CIA and that the strong compliance infrastructure now in place has improved the accountability of our employees and the transparency of our actions," said Valli Baldassano, Executive Vice President and Chief Compliance Officer. A copy of the CIA can be found at: oig.hhs.gov/fraud/cia/index.html.

Cephalon also settled its two outstanding state government investigations for a total of $6.85 million. In its settlement with the Connecticut Attorney General and Commissioner of Consumer Protection, Cephalon agreed to a $6.15 million payment, which includes a contribution of $3.8 million to the Connecticut Department of Public Health to fund state cancer initiatives and $200,000 to fund an electronic prescription monitoring program. In addition, the company agreed to a payment of $700,000 to settle an investigation with the Attorney General of the Commonwealth of Massachusetts. Four hundred fifty ($450) thousand dollars of that payment will be used to benefit consumers in Massachusetts and for comprehensive cancer initiatives.

"We are particularly satisfied that the largest share of the payments made to settle the state Attorney General investigations are for programs and initiatives consistent with our commitment to patients," added Cephalon General Counsel Pappert. "These contributions are aligned with our commitment to the oncology community and our emerging oncology business."

Cephalon has posted a set of Frequently Asked Questions about these settlements on its website at www.cephalon.com/media/on-the-record/

Cephalon, Inc.

Founded in 1987, Cephalon, Inc. is an international biopharmaceutical company dedicated to the discovery, development and commercialization of many unique products in four core therapeutic areas: central nervous system, pain, oncology and addiction. A member of the Fortune 1000, Cephalon currently employs approximately 3,000 people in the United States and Europe. U.S. sites include the company's headquarters in Frazer, Pennsylvania, and offices, laboratories or manufacturing facilities in West Chester, Pennsylvania, Salt Lake City, Utah, and suburban Minneapolis, Minnesota. The company's European headquarters are located in Maisons-Alfort, France.

The company's proprietary products in the United States include: AMRIX(R) (cyclobenzaprine hydrochloride extended-release capsules), TREANDA(R) (bendamustine hydrochloride) for Injection, FENTORA(R) (fentanyl buccal tablet) [C-II], PROVIGIL, TRISENOX(R) (arsenic trioxide) injection, VIVITROL(R) (naltrexone for extended-release injectable suspension), GABITRIL, NUVIGIL(TM) (armodafinil) Tablets [C-IV] and ACTIQ. The company also markets numerous products internationally. Full prescribing information on its U.S. products is available at www.cephalon.com or by calling 1-800-896-5855.

In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. Forward-looking statements provide Cephalon's current expectations or forecasts of future events. These may include statements regarding anticipated approval by the U.S. District Court of the guilty plea; continued ability to participate in government health care programs; expectations regarding the company's compliance programs and policies; anticipated scientific progress on its research programs, development of potential pharmaceutical products, interpretation of clinical results, prospects for regulatory approval, manufacturing development and capabilities, market prospects for its products, sales and earnings guidance, 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. Cephalon'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 facing Cephalon such as those set forth 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 should not rely on any such factors or forward-looking statements. Furthermore, Cephalon does not intend to update publicly any forward-looking statement, except as required by law. The Private Securities Litigation Reform Act of 1995 permits this discussion.

SOURCE Cephalon, Inc.

Cephalon Quarterly Conference Call Invitation

Fri, 19 Sep 2008 00:00:00 -0400

Third Quarter 2008 Earnings Conference Call
Tuesday, October 28, 2008, 5:00 p.m. U.S. EDT

FRAZER, Pa., Sept. 19 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) has scheduled its regular quarterly earnings conference call covering third quarter 2008 results for 5:00 p.m. EDT on Tuesday, October 28, 2008.

October 28, 2008 Schedule

4:10 p.m. EDT Q3 2008 results will be distributed by PRNewswire

4:50 p.m. EDT To participate in the conference call, dial 913-312-9315
and refer to Conference Code Number 8454517

5:00 p.m. EDT Conference call begins promptly.

Simultaneous Webcast

Investors can listen to the call live by logging on to the company's website at www.cephalon.com and clicking on "Investor Information," then "Webcast." Please click on the link and follow the prompts for registration and access.

If you are unable to listen to the live broadcast, an audio or webcast replay of the call will be available approximately two hours after the event until Midnight EST, November 11, 2008. To listen to the audio replay, dial 719-457-0820 and use the Conference Code Number 8454517.

Additional information presented on the conference call may be made available on the Investor Information page of the company's website.

SOURCE Cephalon, Inc.

CONTACT: Robert S. (Chip) Merritt of Cephalon, Inc., +1-610-738-6376, cmerritt@cephalon.com

Cephalon Receives Complete Response Letter Regarding Request for Expanded FENTORA Label for Non-Cancer Breakthrough Pain

Mon, 15 Sep 2008 00:00:00 -0400

FDA Requests Enhancements to Risk Mitigation Strategies Consistent with Company's Recommendations

FRAZER, Pa., Sept. 15 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) announced today receipt of a complete response letter from the Food and Drug Administration (FDA) for its supplemental New Drug Application (sNDA) for FENTORA(R) (fentanyl buccal tablet) [C-II] as a treatment for opioid-tolerant patients with non-cancer breakthrough pain. In its letter, the FDA requested that Cephalon implement and demonstrate the effectiveness of proposed enhancements to the current FENTORA risk management program. These enhancements are consistent with the strategies the company presented at the FDA Advisory Board meeting on May 6, 2008. The agency also requested routine safety updates; no additional safety or efficacy studies were requested. In accordance with new FDA regulations, the company anticipates receiving a second communication from the agency requesting that the FENTORA Risk Minimization Action Plan (RiskMAP) be converted to incorporate the new standards for the Risk Evaluation and Mitigation Strategy (REMS) safety plan.

"The FDA request for revisions to the FENTORA risk management program was expected and over the last four months we have been working diligently to prepare for implementation of the program as soon as possible. We anticipate that the subsequent letter from the agency will provide useful guidance to finalize the timeline for and implementation of ongoing enhancements to the risk management program," said Dr. Lesley Russell, Executive Vice President and Chief Medical Officer at Cephalon. "We intend to put into place a REMS that we hope will not only demonstrate effectiveness for mitigating the risks associated with FENTORA but also pave the way for a new industry standard for opioid pain medications."

To address the FDA's request in the complete response letter, Cephalon plans to implement COVERS(TM), a first-of-its-kind initiative designed to minimize the potential risk of overdose from an opioid through appropriate patient selection. This innovative component of the FENTORA REMS program will educate and engage physicians, patients and pharmacists to assure that patients prescribed FENTORA are opioid-tolerant. Additionally, the company will continue to enhance its existing programs to mitigate risks associated with abuse and misuse.

FENTORA is currently approved for the management of breakthrough pain in opioid-tolerant patients with cancer (for full prescribing information, visit www.fentora.com). The FENTORA sNDA, submitted by Cephalon in November 2007, is based on data from three randomized, placebo-controlled clinical trials in patients with chronic non-cancer pain conditions and one long-term open-label safety study with a total of 941 patients. The patients in these trials were treated for up to 18 months and had a broad range of underlying chronic pain conditions, including chronic low back and chronic neuropathic pain. In these trials, opioid-tolerant patients with chronic pain treated with FENTORA experienced statistically significant improvements in relief from breakthrough pain with an onset and duration of relief similar to that seen in studies of FENTORA in patients with cancer.

Cephalon, Inc.

Founded in 1987, Cephalon, Inc. is an international biopharmaceutical company dedicated to the discovery, development and commercialization of innovative products in four core therapeutic areas: central nervous system, pain, oncology and addiction. A member of the Fortune 1000, Cephalon currently employs approximately 3,000 people in the United States and Europe. U.S. sites include the company's headquarters in Frazer, Pennsylvania, and offices, laboratories or manufacturing facilities in West Chester, Pennsylvania, Salt Lake City, Utah, and suburban Minneapolis, Minnesota. The company's European headquarters are located in Maisons-Alfort, France.

The company's proprietary products in the United States include: TREANDA(R) (bendamustine hydrochloride) for Injection, AMRIX(R) (cyclobenzaprine hydrochloride extended-release capsules), PROVIGIL(R) (modafinil) Tablets [C-IV], FENTORA, TRISENOX(R) (arsenic trioxide) injection, VIVITROL(R) (naltrexone for extended-release injectable suspension), GABITRIL(R) (tiagabine hydrochloride), NUVIGIL(TM) (armodafinil) Tablets [C-IV] and ACTIQ(R) (oral transmucosal fentanyl citrate) [C-II]. The company also markets numerous products internationally. Full prescribing information on its U.S. products is available at www.cephalon.com or by calling 1-800-896-5855.

In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. Forward-looking statements provide Cephalon'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; interpretation of clinical results, including the results of the FENTORA clinical trials; prospects for final regulatory approval of FENTORA; manufacturing development and capabilities; market prospects for its products, particularly with respect to FENTORA sales and earnings guidance; 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. Cephalon'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 facing Cephalon such as those set forth 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 should not rely on any such factors or forward-looking statements. Furthermore, Cephalon does not intend to update publicly any forward-looking statement, except as required by law. The Private Securities Litigation Reform Act of 1995 permits this discussion.

SOURCE Cephalon, Inc.

CONTACT: Media, Stacey Beckhardt, +1-610-738-6198, or cell, +1-610-247-0212, sbeckhar@cephalon.com, or Candace Steele, +1-610-727-6231, or cell, +1-484-318-0804, csteele@cephalon.com, or Investor Relations, Chip Merritt, +1-610-738-6376, cmerritt@cephalon.com, all of Cephalon

Cephalon Exceeds Both Sales and Earnings Guidance for Second Quarter of 2008

Tue, 29 Jul 2008 00:00:00 -0400

TREANDA and AMRIX Off to Strong Starts

Cephalon Advances NUVIGIL Launch to 2009

Maintains 2008 Earnings Guidance Despite New Spending for Pre-Launch NUVIGIL Activity and Increased AMRIX Investment

FRAZER, Pa., July 29 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) today reported second quarter 2008 sales of $485.0 million, compared to sales of $435.2 million for the second quarter 2007 and the company's sales guidance of $455 - $465 million. Net income for the quarter was $60.1 million and basic income per common share was $0.89. Excluding amortization expense and certain other items, adjusted net income was $84.5 million and basic adjusted income per common share for the quarter was $1.25, compared to $1.14 for the same period in 2007 and the company's earnings guidance range of $1.10 to $1.20.

Central nervous system (CNS) franchise sales were $251.2 million during the quarter, a new quarterly record and 9 percent increase compared to the same period last year. Pain franchise reported sales of $134.6 million, an increase of 3 percent versus 2007. Oncology franchise sales were $44.1 million, an increase of 86 percent versus 2007, due to robust sales of TREANDA(R) (bendamustine hydrochloride), which was launched in April and strong European sales of Myocet(R) (doxorubicin hydrochloride).

"With so many companies suffering from a myriad of economic problems, I am proud that Cephalon is reporting another solid quarter of sales and earnings growth," said Frank Baldino, Jr., Ph.D., Chairman and CEO. "In particular, it is extremely gratifying to know that patients are benefiting from our recent launches of TREANDA and AMRIX and that both of these unique products are off to great starts. An earlier launch of NUVIGIL and higher spending on AMRIX this year should provide a foundation for even stronger growth in the years ahead."

The company is updating its guidance for 2008. Total sales guidance is increased by $30 million to $1.86 - $1.91 billion. This includes CNS franchise sales of $975 - $1,000 million, pain franchise sales of $500 - $525 million, oncology franchise sales of $155 - $180 million, and other product sales of $200 - $225 million. Full year SG&A and R&D guidance is $770 - $790 million and $340 - $360 million, respectively, and reflects a $30 million increase in SG&A guidance. Adjusted net income guidance for 2008 is $346 - $353 million and basic adjusted income per common share guidance is $5.10 - $5.20.

For the third quarter of 2008, Cephalon is introducing sales guidance of $480 - $490 million, adjusted net income guidance of $85 - $92 million and basic adjusted income per common share guidance of $1.25 - $1.35.

Basic adjusted income per common share guidance for both the third quarter 2008 and full-year 2008 is reconciled below and is subject to the assumptions set forth therein.

Cephalon's management will discuss the company's second quarter 2008 performance in a conference call with investors beginning at 5:00 p.m. U.S. EDT today. To participate in the conference call, dial +1-913-312-9303 and refer to conference code number 6640353. Investors can listen to the call live by logging on to the company's website at www.cephalon.com and clicking on "Investor Information," then "Webcast." The conference call will be archived and available to investors for one week after the call.

About Cephalon, Inc.

The company's proprietary products in the United States include: AMRIX(R) (cyclobenzaprine hydrochloride extended-release capsules), TREANDA, FENTORA(R) (fentanyl buccal tablet) [C-II], PROVIGIL(R) (modafinil) Tablets [C-IV], TRISENOX(R) (arsenic trioxide) injection, VIVITROL(R) (naltrexone for extended-release injectable suspension), GABITRIL(R) (tiagabine hydrochloride), NUVIGIL(TM) (armodafinil) Tablets [C-IV] and ACTIQ(R) (oral transmucosal fentanyl citrate) [C-II]. The company also markets numerous products internationally. Full prescribing information on its U.S. products is available at www.cephalon.com or by calling 1-800-896-5855.

In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. Forward-looking statements provide Cephalon'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; interpretation of clinical results; prospects for regulatory approval; manufacturing development and capabilities; market prospects for its products, including the growth and acceptance of Amrix in the market and the relative success of the recent launch of Treanda; sales, adjusted net income and basic adjusted income per common share guidance for the third quarter and full-year 2008 and SG&A and R&D guidance for the full-year 2008; 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. Cephalon'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 facing Cephalon such as those set forth 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 should not rely on any such factors or forward-looking statements. Furthermore, Cephalon does not intend to update publicly any forward-looking statement, except as required by law. The Private Securities Litigation Reform Act of 1995 permits this discussion.

This press release and/or the financial results attached to this press
release include "Adjusted Net Income," "Basic Adjusted Income per Common
Share," "Adjusted Net Income Guidance," "Basic Adjusted Income per Common
Share Guidance," and "Diluted Adjusted Income Per Common Share," amounts that
are considered "non-GAAP financial measures" under SEC rules. As required, we
have provided reconciliations of these measures. Additional required
information is located in the Form 8-K furnished to the SEC in connection with
this press release.

CEPHALON, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
REVENUES:
Sales $485,042 $435,194 $918,939 $859,073
Other revenues 7,673 12,018 16,995 25,173
492,715 447,212 935,934 884,246
COSTS AND EXPENSES:
Cost of sales 101,318 83,166 191,234 169,712
Research and development 80,409 96,593 161,844 180,551
Selling, general and
administrative 209,900 189,052 408,884 341,506
Settlement reserve - 56,000 - 56,000
Restructuring charges 1,565 - 5,476 -
In-process research and
development - - 10,000 -
393,192 424,811 777,438 747,769

INCOME FROM OPERATIONS 99,523 22,401 158,496 136,477

OTHER INCOME (EXPENSE):
Interest income 4,912 8,041 11,513 14,617
Interest expense (7,872) (5,017) (16,866) (9,612)
Gain on sale of investment - 5,791 - 5,791
Other income (expense), net (1,543) (1,502) 3,772 1,254
(4,503) 7,313 (1,581) 12,050

INCOME BEFORE INCOME TAXES 95,020 29,714 156,915 148,527

INCOME TAX EXPENSE 34,952 34,022 57,996 77,650

NET INCOME (LOSS) $ 60,068 $ (4,308) $ 98,919 $ 70,877

BASIC INCOME (LOSS)
PER COMMON SHARE $0.89 $(0.06) $1.46 $1.07

DILUTED INCOME (LOSS)
PER COMMON SHARE $0.80 $(0.06) $1.33 $0.90

WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 67,777 66,445 67,721 66,127

WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING-ASSUMING DILUTION 74,852 66,445 74,569 78,656

CEPHALON, INC. AND SUBSIDIARIES

Reconciliation of GAAP Net Income to Adjusted Net Income
(Unaudited)

Three Months Ended
June 30,
2008 2007

GAAP NET INCOME $ 60,068 $ (4,308)

Cost of sales adjustments 28,892(1) 21,016(1)
Research and development adjustments - 16,500(2)
Settlement reserve - 56,000(3)
Gain on sale of investment - (5,791)(4)
Interest expense adjustment 3,750(5) -
Restructuring adjustment 1,565(6) -
Income tax adjustment (9,814)(7) (7,784)(7)
24,393 79,941
ADJUSTED NET INCOME $ 84,461 $ 75,633

BASIC ADJUSTED INCOME PER COMMON SHARE $1.25 $1.14

DILUTED ADJUSTED INCOME PER COMMON SHARE $1.13 $0.93

WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 67,777 66,445

WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING-ASSUMING DILUTION 74,852 81,209

Notes to Reconciliation of GAAP Net Income to Adjusted Net Income

(1) To exclude the on-going amortization of acquired intangible assets
($26.8 million in 2008; $21.0 million in 2007), and accelerated
depreciation related to restructuring ($2.1 million in 2008).

(2) To exclude charges related to payments for several research and
development collaborations.

(3) To exclude the reserve established for the minimum liability related
to the potential settlement of the investigations by the U.S.
Attorney's Office.

(4) To exclude the pre-tax gain related to the sale of certain
investments.

(5) To exclude an estimate of accrued interest related to the agreement
in principle reached with the U.S. Attorney's Office in Philadelphia.

(6) To exclude costs related to the CIMA Labs restructuring announced in
January 2008.

(7) To reflect the tax effect of pre-tax adjustments at the applicable
tax rates and certain other tax adjustments primarily related to
changes in valuation allowances and other changes in tax assets and
liabilities.

CEPHALON, INC. AND SUBSIDIARIES

Reconciliation of GAAP Net Income to Adjusted Net Income
(Unaudited)

Six Months Ended
June 30,
2008 2007

GAAP NET INCOME $ 98,919 $ 70,877

Cost of sales adjustments 56,780(1) 41,981(1)
Research and development adjustments 7,754(2) 26,500(2)
Selling, general and administrative
adjustments 2,955(3) -
Settlement reserve - 56,000(4)
Gain on sale of investment - (5,791)(5)
Interest expense adjustment 7,500(6) -
Restructuring adjustment 5,476(7) -
In-process research and development
adjustments 10,000(8) -
Income tax adjustment (29,329)(9) (18,766)(9)
61,136 99,924

ADJUSTED NET INCOME $160,055 $170,801

BASIC ADJUSTED INCOME PER COMMON SHARE $2.36 $2.58

DILUTED ADJUSTED INCOME PER COMMON SHARE $2.15 $2.17

WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 67,721 66,127

WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING-ASSUMING DILUTION 74,569 78,656

Notes to Reconciliation of GAAP Net Income to Adjusted Net Income

(1) To exclude the on-going amortization of acquired intangible assets
($53.0 million in 2008; $42.0 million in 2007), and accelerated
depreciation related to restructuring ($3.8 million in 2008).

(2) To exclude charges related to payments for several research and
development collaborations, as well as other charges ($1.8 million)
related to employee severance costs in 2008.

(3) To exclude charges related to employee severance costs.

(4) To exclude the reserve established for the minimum liability related
to the potential settlement of the investigations by the U.S.
Attorney's Office.

(5) To exclude the pre-tax gain related to the sale of certain
investments.

(6) To exclude an estimate of accrued interest related to the agreement
in principle reached with U.S. Attorney's Office in Philadelphia.

(7) To exclude costs related to the CIMA Labs restructuring announced in
January 2008.

(8) To exclude charges related to the acquisition of licensed technology
in the oncology field.

(9) To reflect the tax effect of pre-tax adjustments at the applicable
tax rates and certain other tax adjustments primarily related to
changes in valuation allowances and other changes in tax assets and
liabilities.

CEPHALON, INC. AND SUBSIDIARIES

CONSOLIDATED SALES DETAIL
(In thousands)
(Unaudited)

Three Months Ended
June 30,
2008 2007
United United
States Europe Total States Europe Total
Sales:
PROVIGIL $218,942 $15,869 $234,811 $202,465 $11,705 $214,170
GABITRIL 14,307 2,039 16,346 12,978 3,051 16,029
CNS 233,249 17,908 251,157 215,443 14,756 230,199

ACTIQ 38,051 14,130 52,181 53,994 10,060 64,054
Generic OTFC 28,958 - 28,958 30,853 - 30,853
FENTORA 36,374 - 36,374 36,341 - 36,341
AMRIX 17,119 - 17,119 - - -
Pain 120,502 14,130 134,632 121,188 10,060 131,248

TREANDA 14,381 - 14,381 - - -
Other 4,380 25,372 29,752 4,752 18,950 23,702
Oncology 18,761 25,372 44,133 4,752 18,950 23,702

Other 13,117 42,003 55,120 12,652 37,393 50,045

$385,629 $99,413 $485,042 $354,035 $81,159 $435,194

%
Increase
(Decrease)

United
States Europe Total
Sales:
PROVIGIL 8% 36% 10%
GABITRIL 10% (33%) 2%
CNS 8% 21% 9%

ACTIQ (30%) 40% (19%)
Generic OTFC (6%) - (6%)
FENTORA 0% - 0%
AMRIX 100% - 100%
Pain (1%) 40% 3%

TREANDA 100% - 100%
Other (8%) 34% 26%
Oncology 295% 34% 86%

Other 4% 12% 10%

9% 22% 11%

Six Months Ended
June 30,
2008 2007
United United
States Europe Total States Europe Total
Sales:
PROVIGIL $417,411 $30,635 $448,046 $391,192 $24,267 $415,459
GABITRIL 25,438 4,332 29,770 26,862 5,387 32,249
CNS 442,849 34,967 477,816 418,054 29,654 447,708

ACTIQ 75,568 26,333 101,901 111,151 18,631 129,782
Generic OTFC 56,276 - 56,276 64,873 - 64,873
FENTORA 75,307 - 75,307 68,031 - 68,031
AMRIX 26,887 - 26,887 - - -
Pain 234,038 26,333 260,371 244,055 18,631 262,686

TREANDA 14,381 - 14,381 - - -
Other 9,568 47,642 57,210 8,743 38,240 46,983
Oncology 23,949 47,642 71,591 8,743 38,240 46,983

Other 26,644 82,517 109,161 25,833 75,863 101,696

$727,480 $191,459 $918,939 $696,685 $162,388 $859,073

%
Increase
(Decrease)
United
States Europe Total
Sales:
PROVIGIL 7% 26% 8%
GABITRIL (5%) (20%) (8%)
CNS 6% 18% 7%

ACTIQ (32%) 41% (21%)
Generic OTFC (13%) - (13%)
FENTORA 11% - 11%
AMRIX 100% - 100%
Pain (4%) 41% (1%)

TREANDA 100% - 100%
Other 9% 25% 22%
Oncology 174% 25% 52%

Other 3% 9% 7%

4% 18% 7%

CEPHALON, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)

June 30, December 31,
2008 2007
CURRENT ASSETS:
Cash and cash equivalents $673,371 $818,669
Investments - 7,596
Receivables, net 338,142 276,776
Inventory, net 114,479 99,098
Deferred tax assets, net 154,381 176,619
Other current assets 47,782 43,267
Total current assets 1,328,155 1,422,025

PROPERTY AND EQUIPMENT, net 512,449 500,396
GOODWILL 484,029 476,515
INTANGIBLE ASSETS, net 793,066 817,828
DEFERRED TAX ASSETS, net 176,148 141,752
OTHER ASSETS 163,042 147,753
$3,456,889 $3,506,269

CURRENT LIABILITIES:
Current portion of long-term debt $823,131 $1,237,169
Accounts payable 82,265 91,437
Accrued expenses 677,911 677,184
Total current liabilities 1,583,307 2,005,790

LONG-TERM DEBT 202,834 3,788
DEFERRED TAX LIABILITIES, net 74,577 56,540
OTHER LIABILITIES 137,225 138,084
Total liabilities 1,997,943 2,204,202

STOCKHOLDERS' EQUITY:
Common stock, $0.01 par value 708 700
Additional paid-in capital 2,007,582 1,934,965
Treasury stock, at cost (194,782) (158,173)
Accumulated deficit (525,209) (624,128)
Accumulated other comprehensive income 170,647 148,703
Total stockholders' equity 1,458,946 1,302,067
$3,456,889 $3,506,269

CEPHALON, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Six Months Ended
June 30,
2008 2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 98,919 $ 70,877
Adjustments to reconcile net
income to net cash provided
by operating activities:
Deferred income tax expense (benefit) (2,603) 9,490
Shortfall tax benefits from
stock-based compensation - (198)
Depreciation and amortization 84,006 63,441
Stock-based compensation expense 21,894 24,627
Gain on sale of investment - (5,791)
Loss on disposals of property
and equipment 1,031 -
Other (418) 120
Changes in operating assets
and liabilities:
Receivables (56,210) (32,715)
Inventory (7,933) (26,009)
Other assets (24,027) (15,945)
Accounts payable, accrued
expenses and deferred revenues (10,427) 14,716
Other liabilities 16,418 48,205
Net cash provided by
operating activities 120,650 150,818

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (42,898) (50,283)
Acquisition of intangible assets (25,575) -
Investment in third party (6,242) -
Proceeds from sale of investment
in third party - 12,291
Sales and (purchases) of investments, net 7,596 18,040
Net cash used for investing activities (67,119) (19,952)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercises of common
stock options 13,562 66,205
Windfall tax benefits from
stock-based compensation 480 8,681
Acquisition of treasury stock (24) (128)
Payments on and retirements of
long-term debt (215,129) (1,959)
Net cash provided by (used for)
financing activities (201,111) 72,799

EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS 2,282 3,821

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (145,298) 207,486

CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 818,669 496,512

CASH AND CASH EQUIVALENTS, END OF PERIOD $673,371 $703,998

CEPHALON, INC. AND SUBSIDIARIES

Reconciliation of Projected GAAP Basic Income per Common Share
to Basic Adjusted Income Per Common Share Guidance
(Unaudited)

Three Months Ended Twelve Months Ended
September 30, 2008 December 31, 2008

Projected GAAP basic income
per common share $0.99 - $1.09 $3.71 - $3.81

Amortization of current
intangibles $0.37 - $0.37 $1.53 - $1.53
Accelerated depreciation
adjustment $0.02 - $0.02 $0.10 - $0.10
Research and development
adjustments $- - $- $0.11 - $0.11
Selling, general and
administrative adjustments $- - $- $0.04 - $0.04
In-process research and
development adjustments $- - $- $0.15 - $0.15
Restructuring adjustments $0.02 - $0.02 $0.13 - $0.13
Interest expense adjustment $- - $- $0.11 - $0.11

Tax effect of pre-tax
adjustments at the
applicable tax rates $(0.15) - $(0.15) $(0.78) - $(0.78)

Basic adjusted income
per common share
guidance $1.25 $1.35 $5.10 $5.20

The company's guidance is being issued based on certain assumptions
including:

-- Adjusted effective tax rate of approximately 35.5 to 36.5 percent; and
-- Weighted average number of common shares outstanding of 68.0 and 67.9
million shares for the three months ended September 30, 2008 and for
the twelve months ended December 31, 2008, respectively.

SOURCE Cephalon, Inc.

CONTACT: Media
Sheryl Williams, +1-610-738-6493
swilliam@cephalon.com
or
Investors
Robert (Chip) Merritt, +1-610-738-6376
cmerritt@cephalon.com

Company News On-Call: www.prnewswire.com/comp/134563.html
Web site: www.cephalon.com

Journal of Clinical Oncology Publishes Study of Cephalon Medication TREANDA Plus Rituximab in Relapsed Non-Hodgkin's Lymphoma

Tue, 15 Jul 2008 00:00:00 -0400

       Study Reports 92 Percent Response Rate to Combination Treatment

FRAZER, Pa., July 15 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) announced today that in a phase 2 study published online today in the Journal of Clinical Oncology, 92 percent of patients with relapsed indolent B-cell and mantle cell non-Hodgkin's lymphoma (NHL) responded to treatment with TREANDA(R) (bendamustine hydrochloride) for Injection plus rituximab. This combination study is one of three studies in patients with NHL that Cephalon submitted in December 2007 to the U.S. Food and Drug Administration requesting approval of TREANDA for the treatment of patients with indolent NHL who have progressed during or following treatment with rituximab or a rituximab-containing regimen. TREANDA was approved by the FDA in March 2008 for the treatment of patients with chronic lymphocytic leukemia and is not currently approved for use in NHL.

"A variety of treatment options have been employed in patients with indolent B-cell and mantle cell lymphomas, but resistance to treatment in this patient population often limits effective therapeutic options," said Dr. Charles Morris, Vice President, Worldwide Clinical Research at Cephalon. "Based on what we saw in this study, the combination of TREANDA with rituximab appears to elicit a high rate of durable responses and encouraging progression-free survival."

About the Study

In this multi-center, open-label, single arm, Phase 2 study, 66 patients with relapsed, indolent B-cell or mantle cell lymphoma without documented resistance to prior rituximab therapy were treated. Patients received rituximab 375 mg/meter squared intravenously on day one and TREANDA 90 mg/meter squared intravenously on days two and three of a 28-day cycle for up to six cycles. An additional dose of rituximab was given one week before the first cycle and four weeks after the last cycle.

Overall response rate was 92 percent with a complete response rate (CR) of 41 percent. A CR means that after treatment with the TREANDA and rituximab combination, patients had no detectable evidence of disease. These responses were durable, with a median duration of 21 months overall (19 months for the mantle cell population). Additionally, the combination of TREANDA and rituximab was associated with progression-free survival (PFS) of 23 months overall and for patients with mantle cell lymphoma.

In this published study, the combination of both treatments was generally well tolerated. The most common adverse events in the trial included myelosuppression (a condition in which bone marrow activity is decreased), nausea, infection, fatigue, constipation, and diarrhea.

This combination study is one of three studies in patients with NHL that Cephalon submitted to the FDA in December 2007 requesting approval of TREANDA for the treatment of patients with indolent NHL who have progressed during or following treatment with rituximab or a rituximab-containing regimen. The other two studies evaluated the efficacy and safety of TREANDA as monotherapy in this patient population. In all three studies, patients treated with TREANDA had a high rate of response and a manageable side effect profile, with myelosuppression as the most common side effect. Cephalon anticipates a review decision on this application by the agency by October 31, 2008.

About Non-Hodgkin's Lymphoma

According to the American Cancer Society, an estimated 66,000 people in the United States will be diagnosed in 2008 with NHL. There are approximately 30 different types of NHL, which have been divided into two major categories: indolent (or slow growing) and aggressive. Indolent B-cell lymphoma and mantle cell lymphoma (one of the more aggressive sub-types) are difficult to treat because patients are prone to relapse after treatment.

About TREANDA

TREANDA has a unique chemical structure with two primary components, an alkylating group and a benzimidazole component. Preclinical data suggest that TREANDA can lead to cell death via several pathways. TREANDA damages the DNA in cancer cells, which leads to cell death by a process known as apoptosis (programmed cell death) and potentially by an alternate cell death (non-apoptotic) pathway known as mitotic catastrophe (a disruption of normal cell division). The exact mechanism of action of TREANDA remains unknown.

Cephalon holds exclusive rights to market and develop TREANDA in the United States. TREANDA is licensed from Astellas Pharma GmbH. Bendamustine HCl, the active ingredient in TREANDA, is marketed in Germany by Astellas' licensee, Mundipharma International Corporation Limited, under the tradename RIBOMUSTIN(R). In Germany, RIBOMUSTIN is indicated as a single-agent or in combination with other anti-cancer agents for indolent NHL, multiple myeloma, and CLL. SymBio Pharmaceuticals Ltd holds exclusive rights to develop and market bendamustine HCl in Japan and selected Asia Pacific Rim countries.

About Cephalon Oncology

Cephalon Oncology is a strategic business unit focused on the development and commercialization of oncology products and resources for patients and healthcare providers. The Cephalon Oncology portfolio includes a number of promising investigational and marketed compounds. In addition to TREANDA, the Cephalon Oncology therapeutic portfolio in the United States includes TRISENOX(R) (arsenic trioxide) injection, a product approved in the United States for the treatment of patients with relapsed or refractory acute promyelocytic leukemia, and CEP-701, an oral small molecule inhibitor of tyrosine kinases including FLT-3, TRK and JAK-2, in phase 3 development for acute myeloid leukemia.

In Europe, Cephalon markets two additional oncology products: Myocet(R) (liposomal doxorubicin), indicated in combination with cyclophospamide for the first-line treatment of metastatic breast cancer and Targretin(R) (bexarotene) a treatment for advanced cutaneous T-cell lymphoma.

About Cephalon, Inc.

The company's proprietary products in the United States include: PROVIGIL(R) (modafinil) Tablets [C-IV], FENTORA(R) (fentanyl buccal tablet) [C-II], TRISENOX(R) (arsenic trioxide) injection, TREANDA, AMRIX(R) (cyclobenzaprine hydrochloride extended-release capsules), VIVITROL(R) (naltrexone for extended-release injectable suspension), GABITRIL(R) (tiagabine hydrochloride), NUVIGIL(TM) (armodafinil) Tablets [C-IV] and ACTIQ(R) (oral transmucosal fentanyl citrate) [C-II]. The company also markets numerous products internationally. Full prescribing information on its U.S. products is available at www.cephalon.com or by calling 1-800-896-5855.

In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. Forward-looking statements provide Cephalon'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, including the results of any clinical programs with respect to TREANDA or the timing or approval of any current or future filings for regulatory approval of TREANDA or other Cephalon Oncology compounds; interpretation of clinical results, particularly with respect to the TREANDA clinical trials; manufacturing development and capabilities; market prospects for its products; sales and earnings guidance; 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. Cephalon'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 facing Cephalon such as those set forth 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 should not rely on any such factors or forward-looking statements. Furthermore, Cephalon does not intend to update publicly any forward-looking statement, except as required by law. The Private Securities Litigation Reform Act of 1995 permits this discussion.

SOURCE Cephalon, Inc.
-0- 07/15/2008
/CONTACT: Media: Jenifer Antonacci, +1-610-738-6674,
jantonac@cephalon.com, or Investors: Robert (Chip) Merritt, +1-610-738-6376,
cmerritt@cephalon.com, both of Cephalon, Inc./
/Company News On-Call: www.prnewswire.com/comp/134563.html /
/Web site: www.cephalon.com /
(CEPH)

CO: Cephalon, Inc.
ST: Pennsylvania
IN: MTC HEA BIO PUB
SU: SVY TRI

AM-DS
-- NETU069 --
3574 07/15/2008 08:44 EDT www.prnewswire.com

Cephalon Quarterly Conference Call Invitation

Thu, 26 Jun 2008 00:00:00 -0400

Second Quarter 2008 Earnings Conference Call Tuesday, July 29, 2008, 5:00 p.m. U.S. EDT

FRAZER, Pa., June 26 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) has scheduled its regular quarterly earnings conference call covering second quarter 2008 results for 5:00 p.m. EDT on Tuesday, July 29, 2008.

July 29, 2008 Schedule
4:10 p.m. EDT Q2 2008 results will be distributed by PRNewswire

4:50 p.m. EDT To participate in the conference call, dial 913-312-9303 and refer to Conference Code Number 6640353

5:00 p.m. EDT Conference call begins promptly.

Simultaneous Webcast

Investors can listen to the call live by logging on to the company's website at www.cephalon.com and clicking on Investor Information, then Webcast. Please click on the link and follow the prompts for registration and access.

If you are unable to listen to the live broadcast, an audio or webcast replay of the call will be available approximately two hours after the event until Midnight EDT, August 12, 2008. To listen to the audio replay, dial 719-457-0820 and use the Conference Code Number 6640353.

Additional information presented on the conference call may be made available on the Investor Information page of the company's website.

SOURCE Cephalon, Inc.

CONTACT: Robert S. (Chip) Merritt, +1-610-738-6376, cmerritt@cephalon.com

Cephalon Announces Issuance of Patent for AMRIX

Tue, 17 Jun 2008 00:00:00 -0400

FRAZER, Pa., June 17 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) announced today that the U.S. Patent and Trademark Office has issued a pharmaceutical formulation patent for AMRIX(R) (Cyclobenzaprine Hydrochloride Extended-Release Capsules). U.S. Patent No. 7,387,793 was issued to Eurand Inc., the developer of AMRIX, and expires on February 26, 2025. Last year, Cephalon acquired an exclusive license from Eurand to market AMRIX in North America. The issued claims cover Eurand's proprietary Diffucaps(R) technology used to formulate AMRIX as an extended-release capsule containing the muscle relaxant cyclobenzaprine. The AMRIX formulation allows, for the first time, a full day of cyclobenzaprine in a single dose medication for the treatment of acute painful musculoskeletal conditions.

"The issuance of this patent supports our investment in AMRIX and its innovative technology, which offers the only once-daily treatment option for patients suffering from acute muscle spasms," said Frank Baldino, Jr., Ph.D., Chairman and Chief Executive Officer. "Physician and patient response to AMRIX has resulted in strong prescription growth in 2008 and we expect that this product will be a key growth driver in our business for many years."

About Cephalon, Inc.

The company's proprietary products in the United States include: TREANDA(R) (bendamustine hydrochloride) for injection, AMRIX, PROVIGIL(R) (modafinil) Tablets [C-IV], FENTORA(R) (fentanyl buccal tablet) [C-II], TRISENOX(R) (arsenic trioxide) injection, VIVITROL(R) (naltrexone for extended-release injectable suspension), GABITRIL(R) (tiagabine hydrochloride), NUVIGIL(TM) (armodafinil) Tablets [C-IV] and ACTIQ(R) (oral transmucosal fentanyl citrate) [C-II]. The company also markets numerous products internationally. Full prescribing information on its U.S. products is available at www.cephalon.com or by calling 1-800-896-5855.

In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. Forward-looking statements provide Cephalon'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; interpretation of clinical results; manufacturing development and capabilities; market prospects for its products, including AMRIX; sales and earnings guidance; and other statements regarding matters that are not historical facts, including statements regarding the AMRIX patent. 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. Cephalon'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 facing Cephalon such as those set forth 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 should not rely on any such factors or forward-looking statements. Furthermore, Cephalon does not intend to update publicly any forward-looking statement, except as required by law. The Private Securities Litigation Reform Act of 1995 permits this discussion.

SOURCE Cephalon, Inc.
-0- 06/17/2008
/CONTACT: Media, Sheryl Williams, +1-610-738-6493, swilliam@cephalon.com;
or Investors, Robert (Chip) Merritt, +1-610-738-6376, cmerritt@cephalon.com,
both of Cephalon, Inc./
/Company News On-Call: www.prnewswire.com/comp/134563.html/
/Web site: www.cephalon.com /
(CEPH)

CO: Cephalon, Inc.; Eurand Inc.
ST: Pennsylvania
IN: MTC BIO
SU: PLW

JM-BR
-- NETU072 --
4107 06/17/2008 08:41 EDT www.prnewswire.com

Cephalon Files Patent Infringement Lawsuit Against Watson Pharmaceuticals

Tue, 03 Jun 2008 00:00:00 -0400

FRAZER, Pa., June 3 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) today announced that it and its wholly-owned subsidiary CIMA LABS INC. have filed a lawsuit in U.S. District Court in Delaware against Watson Pharmaceuticals, Inc. and its wholly-owned subsidiary, Watson Laboratories, Inc., for infringement of U.S. Patent Nos. 6,200,604 and 6,974,590, which cover methods of use for the Cephalon product FENTORA(R) (fentanyl buccal tablet) [C-II]. The 6,200,604 and 6,974,590 patents do not expire until 2019. FENTORA was approved by the U.S. Food and Drug Administration (FDA) in September 2006 for the management of breakthrough pain in patients with cancer who are already receiving and who are tolerant to opioid therapy for their underlying persistent cancer pain.

The lawsuit is based upon an Abbreviated New Drug Application (ANDA) filed by Watson seeking FDA approval for a generic equivalent of fentanyl buccal tablets to be sold in the United States. Watson alleges that the above two FENTORA patents are invalid, unenforceable and/or will not be infringed by Watson's manufacture, use or sale of the product described in its ANDA.

"We believe that the proposed Watson ANDA product infringes our patents," said Jerry Pappert, Executive Vice President and General Counsel. "The FENTORA patents were approved by the United States Patent and Trademark Office based on the results of extensive research by CIMA LABS. We continue to believe that our patent position for this product is strong and intend to vigorously defend our intellectual property."

The filing of this lawsuit is provided for by the Hatch-Waxman Act, a federal statute governing certain aspects of generic drug approvals. Under that statute, the filing of the lawsuit stays any FDA approval of the Watson ANDA until the earlier of a district court judgment in favor of Watson or 30 months from the company's April 2008 receipt of a Paragraph IV certification letter from Watson.

About Cephalon, Inc.

The company's proprietary products in the United States include: TREANDA(R) (bendamustine hydrochloride) for injection, AMRIX(R) (Cyclobenzaprine Hydrochloride Extended-Release Capsules), PROVIGIL(R) (modafinil) Tablets [C-IV], FENTORA, TRISENOX(R) (arsenic trioxide) injection, VIVITROL(R) (naltrexone for extended-release injectable suspension), GABITRIL(R) (tiagabine hydrochloride), NUVIGIL(TM) (armodafinil) Tablets [C-IV] and ACTIQ(R) (oral transmucosal fentanyl citrate) [C-II]. The company also markets numerous products internationally. Full prescribing information on its U.S. products is available at www.cephalon.com or by calling 1-800-896-5855.

In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. Forward-looking statements provide Cephalon'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; interpretation of clinical results; manufacturing development and capabilities; market prospects for its products; sales and earnings guidance; and other statements regarding matters that are not historical facts, including statements regarding whether the Watson ANDA product infringes the FENTORA patents, the strength of Cephalon's patent position for FENTORA or Cephalon's intention to defend the FENTORA intellectual property. 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. Cephalon'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 facing Cephalon such as those set forth 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 should not rely on any such factors or forward-looking statements. Furthermore, Cephalon does not intend to update publicly any forward-looking statement, except as required by law. The Private Securities Litigation Reform Act of 1995 permits this discussion.

SOURCE Cephalon, Inc.

CONTACT: Media, Sheryl Williams, +1-610-738-6493, swilliam@cephalon.com, or Investors, Robert (Chip) Merritt, +1-610-738-6376, cmerritt@cephalon.com, both of Cephalon, Inc.

Cephalon Announces FDA Advisory Committee Recommendation Against Approval of an Expanded Label for FENTORA

Tue, 06 May 2008 00:00:00 -0400

Cephalon to Hold Conference Call with Investors Today at 5:30 p.m. EDT

FRAZER, Pa., May 6 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) announced today that a Joint Advisory Committee to the U.S. Food and Drug Administration (FDA) voted not to recommend approval of an expanded label for FENTORA(R) (fentanyl buccal tablet) [C-II] for the management of breakthrough pain in opioid-tolerant patients with chronic pain conditions. The panel expressed concerns about minimizing risks potentially associated with an expanded indication of FENTORA. During the meeting, the company presented a comprehensive and novel Risk Minimization Action Plan (RiskMAP) to address these risks.

FDA action on the FENTORA supplemental new drug application (sNDA) is expected by September 13, 2008. FENTORA is currently indicated for the management of breakthrough pain in opioid-tolerant patients with cancer.

"We are disappointed with the recommendation of the Advisory Committee," said Dr. Lesley Russell, Executive Vice President, Worldwide Medical and Regulatory Operations at Cephalon. "We will work with the FDA over the next few months to determine future steps including any additional risk minimization strategies that could potentially address the panel's concerns in this broader patient population."

The recommendation of the Joint Advisory Committee for Anesthetic and Life Support Drugs and the Advisory Committee for Drug Safety and Risk Management was based upon data presented by Cephalon from three randomized clinical trials and one 18-month open-label safety study with a total of 941 patients. The Joint Advisory Committee also considered proposed enhancements to the FENTORA RiskMAP that are designed to assure appropriate patient selection and to mitigate the risks of overdose, abuse, and diversion.

The FDA considers the Committee's recommendation in its review of the sNDA for FENTORA, which was submitted by Cephalon in November 2007. The FDA is not required to follow the Committee's guidance, but the agency does take this advice into consideration when reviewing a proposed label expansion.

Conference Call for Investors

Cephalon management will discuss the FDA Advisory Committee proceedings with investors during a conference call beginning at 5:30 p.m. EDT today. To participate in the conference call, dial 1-913-312-0407 and refer to conference call ID number 2046179. Individual investors are encouraged to log onto the investor relations section of www.cephalon.com and click on the webcast to access the live call.

PHYSICIANS AND OTHER HEALTHCARE PROVIDERS MUST BECOME FAMILIAR WITH THE IMPORTANT WARNINGS IN THIS LABEL.

Reports of serious adverse events, including deaths in patients treated with FENTORA have been reported. Deaths occurred as a result of improper patient selection (e.g., use in opioid non-tolerant patients) and/or improper dosing. The substitution of FENTORA for any other fentanyl product may result in fatal overdose.

FENTORA is indicated only for the management of breakthrough pain in patients with cancer who are already receiving and who are tolerant to around-the-clock opioid therapy for their underlying persistent cancer pain. Patients considered opioid tolerant are those who are taking around-the-clock medicine consisting of at least 60 mg of oral morphine daily, at least 25 mcg of transdermal fentanyl/hour, at least 30 mg of oxycodone daily, at least 8 mg of oral hydromorphone daily, or an equianalgesic dose of another opioid daily for a week or longer.

FENTORA is not indicated for use in opioid non-tolerant patients including those with only as needed (PRN) prior exposure.

FENTORA is contraindicated in the management of acute or postoperative pain including headache/migraine. Life-threatening respiratory depression could occur at any dose in opioid non-tolerant patients. Deaths have occurred in opioid non-tolerant patients.

When prescribing, do not convert patients on a mcg per mcg basis from ACTIQ to FENTORA. Carefully consult the Initial Dosing Recommendations table. (See DOSAGE AND ADMINISTRATION, Table 7.)

When dispensing, do not substitute a FENTORA prescription for other fentanyl products. Substantial differences exist in the pharmacokinetic profile of FENTORA compared to other fentanyl products that result in clinically important differences in the extent of absorption of fentanyl. As a result of these differences, the substitution of FENTORA for any other fentanyl product may result in fatal overdose.

Special care must be used when dosing FENTORA. If the breakthrough pain episode is not relieved after 30 minutes, patients may take ONLY one additional dose using the same strength and must wait at least 4 hours before taking another dose.(See DOSAGE AND ADMINISTRATION.)

FENTORA contains fentanyl, an opioid agonist and a Schedule II controlled substance, with an abuse liability similar to other opioid analgesics. FENTORA can be abused in a manner similar to other opioid agonists, legal or illicit. This should be considered when prescribing or dispensing FENTORA in situations where the physician or pharmacist is concerned about an increased risk of misuse, abuse or diversion. Schedule II opioid substances which include morphine, oxycodone, hydromorphone, oxymorphone, and methadone have the highest potential for abuse and risk of fatal overdose due to respiratory depression.

The concomitant use of FENTORA with strong and moderate cytochrome P450 3A4 inhibitors may result in an increase in fentanyl plasma concentrations, and may cause potentially fatal respiratory depression.

Carefully consult the Initial Dosing Recommendations table. (See DOSAGE AND ADMINISTRATION, Table 7.)

For full prescribing information, including black box warning, visit www.fentora.com, or call Cephalon Medical Services at 1-800-896-5855.

Cephalon, Inc.

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. Cephalon'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 facing Cephalon such as those set forth 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 should not rely on any such factors or forward-looking statements. Furthermore, Cephalon does not intend to update publicly any forward-looking statement, except as required by law. The Private Securities Litigation Reform Act of 1995 permits this discussion.

SOURCE Cephalon, Inc.

CONTACT: Media, Candace Steele, work, +1-610-727-6231, cell, +1-443-326-0077, csteele@cephalon.com; or Investors, Robert (Chip) Merritt, +1-610-738-6376, cmerritt@cephalon.com, both of Cephalon, Inc.

Cephalon Conference Call Invitation

Mon, 05 May 2008 00:00:00 -0400

Tuesday, May 6, 2008, 5:30 p.m. U.S. EDT

FRAZER, Pa., May 5 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) today announced plans to host an investor conference call at 5:30 p.m. EDT on May 6, 2008 to discuss the U.S. Food and Drug Administration advisory committee panel meeting held that day. The advisory committee panel is considering the company's supplemental New Drug Application for FENTORA(R) (fentanyl buccal tablet) [C-II] for the management of breakthrough pain in opioid-tolerant patients with chronic pain.

May 6, 2008 Schedule

5:20 p.m. EDT To participate in the conference call, dial 913-312-0407
and refer to Conference Code Number 2046179

5:30 p.m. EDT Conference call begins promptly.

Simultaneous Webcast

If you are unable to listen to the live broadcast, an audio or webcast replay of the call will be available approximately two hours after the event until Midnight EDT, May 20, 2008. To listen to the audio replay, dial 719- 457-0820 and use the Conference Code Number 2046179.

Additional information presented on the conference call may be made available on the Investor Information page of the company's website.

SOURCE Cephalon, Inc.

CONTACT: Robert S. (Chip) Merritt of Cephalon, Inc., +1-610-738-6376, cmerritt@cephalon.com

Cephalon Reports Strong First Quarter Earnings

Thu, 01 May 2008 00:00:00 -0400

AMRIX Growing Rapidly

TREANDA Successfully Launched in April

FRAZER, Pa., May 1 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) today reported first quarter 2008 sales of $433.9 million, compared to sales of $423.9 million for the first quarter 2007 and the company's sales guidance of $435 - $445 million. Basic income per common share for the quarter was $0.57. Excluding amortization expense and certain other items, basic adjusted income per common share for the quarter was $1.12, compared to $1.45 for the same period in 2007 and the company's earnings guidance range of $1.00 to $1.10.

Central nervous system (CNS) franchise sales were $226.7 million during the quarter, a 4 percent increase compared to the same period last year. Pain franchise reported strong sales of $125.7 million, a decrease of only 4 percent versus 2007, with sales of AMRIX(R) (cyclobenzaprine hydrochloride extended-release capsules) and FENTORA(R) (fentanyl buccal tablet) [C-II] largely offsetting the continued generic erosion of ACTIQ(R) (oral transmucosal fentanyl citrate) [C-II]. Oncology franchise sales were $27.5 million and do not include sales of TREANDA(R) (bendamustine hydrochloride), which was launched in April.

"We are receiving overwhelmingly positive feedback from the TREANDA launch," said Frank Baldino, Jr., Ph.D., Chairman and CEO. "In addition, prescriptions for AMRIX doubled compared to last quarter as acceptance of this product in the market continues to grow. These two products will continue to drive Cephalon sales growth."

The company is updating its guidance for 2008. Total sales guidance is $1.83-$1.88 billion. This includes CNS franchise sales of $975-$1,000 million, pain franchise sales of $500-$525 million, oncology franchise sales of $125- $150 million, and other product sales of $200-$225 million. Full year SG&A and R&D guidance is $740-$760 million and $340-$360 million, respectively. Adjusted net income guidance is $346-$353 million and basic adjusted income per common share guidance is $5.10-$5.20.

For the second quarter of 2008, Cephalon is introducing sales guidance of $455-$465 million, adjusted net income guidance of $74.6-$81.4 million and basic adjusted income per common share guidance of $1.10-$1.20.

Basic adjusted income per common share guidance for both the second quarter 2008 and full-year 2008 is reconciled below and is subject to the assumptions set forth therein.

Cephalon's management will discuss the company's second quarter 2008 performance in a conference call with investors beginning at 5:00 p.m. U.S. EDT today. To participate in the conference call, dial +1-913-981-5581 and refer to conference code number 7561641. Investors can listen to the call live by logging on to the company's website at www.cephalon.com and clicking on "Investor Information," then "Webcast." The conference call will be archived and available to investors for one week after the call.

About Cephalon, Inc.

Founded in 1987, Cephalon, Inc. is an international biopharmaceutical company dedicated to the discovery, development and marketing of innovative products in four core therapeutic areas: central nervous system, pain, oncology and addiction. A member of the Fortune 1000, Cephalon currently employs close to 3,000 people in the United States and Europe. U.S. sites include the company's headquarters in Frazer, Pennsylvania, and offices, laboratories or manufacturing facilities in West Chester, Pennsylvania, Salt Lake City, Utah, and suburban Minneapolis, Minnesota. Cephalon's European headquarters are located in Maisons-Alfort, France.

The company's proprietary products in the United States include: PROVIGIL(R) (modafinil) Tablets [C-IV], FENTORA, TRISENOX(R) (arsenic trioxide), AMRIX, TREANDA, VIVITROL(R) (naltrexone for extended-release injectable suspension), GABITRIL(R) (tiagabine hydrochloride), and ACTIQ. The company also markets numerous products internationally. Full prescribing information on its U.S. products is available at www.cephalon.com or by calling 1-800-896-5855.

In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. Forward-looking statements provide Cephalon'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; interpretation of clinical results; prospects for regulatory approval; manufacturing development and capabilities; market prospects for its products, including the growth and acceptance of AMRIX in the market and the relative success of the recent launch of Treanda; sales, adjusted net income and basic adjusted income per common share guidance for the second quarter and full-year 2008 and SG&A and R&D guidance for the full-year 2008; 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. Cephalon'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 facing Cephalon such as those set forth 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 should not rely on any such factors or forward-looking statements. Furthermore, Cephalon does not intend to update publicly any forward-looking statement, except as required by law. The Private Securities Litigation Reform Act of 1995 permits this discussion.

This press release and/or the financial results attached to this press release include "Adjusted Net Income," "Basic Adjusted Income per Common Share," "Adjusted Net Income Guidance," "Basic Adjusted Income per Common Share Guidance," and "Diluted Adjusted Income Per Common Share," amounts that are considered "non-GAAP financial measures" under SEC rules. As required, we have provided reconciliations of these measures. Additional required information is located in the Form 8-K furnished to the SEC in connection with this press release.

CEPHALON, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

Three Months Ended
March 31,
2008 2007
REVENUES:
Sales $433,897 $423,879
Other revenues 9,322 13,155
443,219 437,034
COSTS AND EXPENSES:
Cost of sales 89,916 86,546
Research and development 81,435 83,958
Selling, general and administrative 198,984 152,454
Restructuring charges 3,911 -
Acquired in-process research and development 10,000 -
384,246 322,958

INCOME FROM OPERATIONS 58,973 114,076

OTHER INCOME (EXPENSE):
Interest income 6,601 6,576
Interest expense (8,994) (4,595)
Other income, net 5,315 2,756
2,922 4,737

INCOME BEFORE INCOME TAXES 61,895 118,813

INCOME TAX EXPENSE 23,044 43,628

NET INCOME $38,851 $75,185

BASIC INCOME PER COMMON SHARE $0.57 $1.14

DILUTED INCOME PER COMMON SHARE $0.52 $0.99

WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 67,665 65,806

WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING-ASSUMING DILUTION 74,286 75,835

CEPHALON, INC. AND SUBSIDIARIES

Reconciliation of GAAP Net Income to Adjusted Net Income
(Unaudited)

Three Months Ended
March 31,
2008 2007

GAAP NET INCOME $38,851 $75,185

Cost of sales adjustments 27,888 (1) 20,965 (1)
Research and development adjustments 7,754 (2) 10,000 (2)
Selling, general and administrative
adjustments 2,955 (3) -
In-process research and development
adjustments 10,000 (4) -
Restructuring adjustments 3,911 (5) -
Interest expense adjustment 3,750 (6) -
Income tax adjustment (19,515)(7) (10,982)(7)
36,743 19,983

ADJUSTED NET INCOME $75,594 $95,168

BASIC ADJUSTED INCOME PER COMMON SHARE $1.12 $1.45

DILUTED ADJUSTED INCOME PER COMMON SHARE $1.02 $1.25

WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 67,665 65,806

WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING-ASSUMING DILUTION 74,286 75,835

Notes to Reconciliation of GAAP Net Income to Adjusted Net Income

(1) To exclude the on-going amortization of acquired intangible assets
($26.2M in 2008; $21.0M in 2007) and accelerated depreciation related
to restructuring ($1.7M in 2008).

(2) To exclude charges related to payment for research and development
collaboration, as well as other charges ($1.8M) related to severance
in 2008.

(3) To exclude charges related to employee severance costs.

(4) To exclude charges related to the acquisition of the licensed
technology in the oncology field.

(5) To exclude costs related to CIMA restructuring.

(6) To exclude an estimate of accrued interest related to the agreement in
principle reached with U.S. Attorney's Office in Philadelphia.

(7) To reflect the tax effect of pre-tax adjustments at the applicable tax
rates and certain other tax adjustments primarily related to changes
in valuation allowances and other changes in tax assets and
liabilities.

CEPHALON, INC. AND SUBSIDIARIES

CONSOLIDATED SALES DETAIL
(In thousands)
(Unaudited)

Three Months Ended
March 31,
2008 2007
United United
States Europe Total States Europe Total

Sales:
PROVIGIL $198,469 $14,766 $213,235 $188,727 $12,562 $201,289
GABITRIL 11,131 2,293 13,424 13,884 2,336 16,220
CNS 209,600 17,059 226,659 202,611 14,898 217,509

ACTIQ 37,517 12,203 49,720 57,157 8,571 65,728
Generic OTFC 27,318 - 27,318 34,020 - 34,020
FENTORA 38,933 - 38,933 31,690 - 31,690
AMRIX 9,768 - 9,768 - - -
Pain 113,536 12,203 125,739 122,867 8,571 131,438

Oncology 5,188 22,270 27,458 3,991 19,290 23,281

Other 13,527 40,514 54,041 13,181 38,470 51,651

$341,851 $92,046 $433,897 $342,650 $81,229 $423,879

%
Increase
(Decrease)
United
States Europe Total
Sales:
PROVIGIL 5% 18% 6%
GABITRIL (20%) (2%) (17%)
CNS 3% 15% 4%

ACTIQ (34%) 42% (24%)
Generic OTFC (20%) 0% (20%)
FENTORA 23% 0% 23%
AMRIX 100% 0% 100%
Pain (8%) 42% (4%)

Oncology 30% 15% 18%

Other 3% 5% 5%

(0%) 13% 2%

CEPHALON, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)

March 31, December 31,
2008 2007
CURRENT ASSETS:
Cash and cash equivalents $855,846 $818,669
Investments - 7,596
Receivables, net 295,035 276,776
Inventory, net 117,726 99,098
Deferred tax assets, net 150,456 176,619
Other current assets 41,828 43,267
Total current assets 1,460,891 1,422,025

PROPERTY AND EQUIPMENT, net 509,933 500,396
GOODWILL 486,865 476,515
INTANGIBLE ASSETS, net 822,342 817,828
DEFERRED TAX ASSETS, net 172,162 141,752
OTHER ASSETS 155,227 147,753
$3,607,420 $3,506,269

CURRENT LIABILITIES:
Current portion of long-term debt $1,037,163 $1,237,169
Accounts payable 94,547 91,437
Accrued expenses 665,746 677,184
Total current liabilities 1,797,456 2,005,790

LONG-TERM DEBT 203,317 3,788
DEFERRED TAX LIABILITIES, net 75,860 56,540
OTHER LIABILITIES 143,020 138,084
Total liabilities 2,219,653 2,204,202

STOCKHOLDERS' EQUITY:
Common stock, $0.01 par value 701 700
Additional paid-in capital 1,951,294 1,934,965
Treasury stock, at cost (158,197) (158,173)
Accumulated deficit (585,277) (624,128)
Accumulated other comprehensive income 179,246 148,703
Total stockholders' equity 1,387,767 1,302,067
$3,607,420 $3,506,269

CEPHALON, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Three Months Ended
March 31,
2008 2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $38,851 $75,185
Adjustments to reconcile net income
to net cash provided by operating
activities:
Deferred income tax expense 6,141 11,629
Shortfall tax benefits from stock-based
compensation - (83)
Depreciation and amortization 41,577 30,592
Amortization of debt issuance costs 60 60
Stock-based compensation expense 10,950 11,699
Loss on disposals of property and
equipment 252 -
Changes in operating assets and
liabilities:
Receivables (11,126) (36,850)
Inventory (9,567) (14,585)
Other assets (7,961) (12,523)
Accounts payable, accrued expenses
and deferred revenues (18,572) (9,160)
Other liabilities 13,639 2,584
Net cash provided by operating
activities 64,244 58,548

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (18,295) (21,384)
Acquisition of intangible assets (25,046) -
Sales and maturities of
available-for-sale investments 7,596 18,023
Purchases of available-for-sale
investments - (4,786)
Net cash used for investing
activities (35,745) (8,147)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercises of common
stock options 5,277 17,479
Windfall tax benefits from stock-based
compensation 234 1,431
Acquisition of treasury stock (24) (128)
Payments on and retirements of
long-term debt (1,029) (953)
Net cash provided by financing
activities 4,458 17,829

EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS 4,220 2,688

NET INCREASE IN CASH AND CASH EQUIVALENTS 37,177 70,918

CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD 818,669 496,512

CASH AND CASH EQUIVALENTS, END OF PERIOD $855,846 $567,430

CEPHALON, INC. AND SUBSIDIARIES

Reconciliation of Projected GAAP Basic Income per Common Share
to Basic Adjusted Income Per Common Share Guidance
(Unaudited)

Three Months Ended Twelve Months Ended
June 30, 2008 December 31, 2008

Projected GAAP basic income
per common share $0.81 - $0.91 $3.75 - $3.85

Amortization of current intangibles $0.40 - $0.40 $1.58 - $1.58
Accelerated depreciation adjustment $0.03 - $0.03 $0.10 - $0.10
Research and development adjustments $- - $- $0.11 - $0.11
Selling, general and administrative
adjustments $- - $- $0.04 - $0.04
In-process research and development
adjustment $- - $- $0.15 - $0.15
Restructuring adjustments $0.02 - $0.02 $0.10 - $0.10
Interest expense adjustment $- - $- $0.06 - $0.06

Tax effect of pre-tax adjustments at
the applicable tax rates $(0.16)- $(0.16) $(0.79)- $(0.79)

Basic adjusted income per common share
guidance $1.10 - $1.20 $5.10 - $5.20

The company's guidance is being issued based on certain assumptions including:

-- Entrance into the market of an additional generic version of ACTIQ in
the second half of 2008;
-- Adjusted effective tax rate of approximately 36 to 37 percent; and
-- Weighted average number of common shares outstanding of 67.8 million
shares for the three months ended June 30, 2008 and for the twelve
months ended December 31, 2008, respectively.

SOURCE Cephalon, Inc.

CONTACT: Media: Sheryl Williams, +1-610-738-6493, swilliam@cephalon.com, or Investors: Robert (Chip) Merritt, +1-610-738-6376, cmerritt@cephalon.com, both of Cephalon, Inc.

Cephalon Appoints Gerald J. Pappert as General Counsel

Wed, 30 Apr 2008 00:00:00 -0400

FRAZER, Pa., April 30 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH) announced today that Jerry Pappert has been appointed Executive Vice President and General Counsel. In this position, Mr. Pappert will manage all legal affairs for the company, including those relating to commercial and financial transactions, litigation, intellectual property and corporate and securities matters. Reporting directly to Chairman and CEO, Frank Baldino Jr., Ph.D., he will serve on the company's Executive Committee. Mr. Pappert will join the company on May 12.

"We are fortunate to have an attorney of Jerry's caliber join our leadership team," said Frank Baldino, Jr., Ph.D., Chairman and CEO. "Jerry exemplifies the professional leadership qualities we value and his strategic advice and counsel will help us navigate the increasingly intersecting environment of legal and business issues."

Mr. Pappert brings 20 years of legal experience, which includes eight years with the Commonwealth of Pennsylvania, as Attorney General from 2003 to 2005 and First Deputy Attorney General from 1997 to 2003. Since leaving the Attorney General's office, Pappert has been a partner with Ballard Spahr Andrews & Ingersoll LLP in Philadelphia where he has been a member of the Litigation Department. Prior to his tenure in Harrisburg, he conducted a commercial litigation practice within a large Philadelphia law firm.

A graduate of Villanova University, Mr. Pappert earned his Juris Doctorate from the University of Notre Dame Law School in South Bend, Indiana.

Cephalon, Inc.

The company's proprietary products in the United States include: AMRIX(R) (cyclobenzaprine hydrochloride extended-release capsules), TREANDA(R) (bendamustine hydrochloride) for Injection, FENTORA(R) (fentanyl buccal tablet) [C-II], PROVIGIL(R) (modafinil) Tablets [C-IV], TRISENOX(R) (arsenic trioxide) injection, VIVITROL(R) (naltrexone for extended-release injectable suspension), GABITRIL(R) (tiagabine hydrochloride), NUVIGIL(TM) (armodafinil) Tablets [C-IV] and ACTIQ(R) (oral transmucosal fentanyl citrate) [C-II]. The company also markets numerous products internationally. Full prescribing information on its U.S. products is available at www.cephalon.com or by calling 1-800-896-5855.

In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. Forward-looking statements provide Cephalon'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, interpretation of clinical results, prospects for regulatory approval, manufacturing development and capabilities, market prospects for its products, sales and earnings guidance, 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. Cephalon'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 facing Cephalon such as those set forth 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 should not rely on any such factors or forward-looking statements. Furthermore, Cephalon does not intend to update publicly any forward-looking statement, except as required by law. The Private Securities Litigation Reform Act of 1995 permits this discussion.

SOURCE Cephalon, Inc.

CONTACT: Media: Sheryl Williams, +1-610-738-6493, swilliam@cephalon.com, or Investors: Robert (Chip) Merritt, +1-610-738-6376, cmerritt@cephalon.com

Cephalon Notified of Generic Fentanyl Buccal Tablet Filing

Thu, 24 Apr 2008 00:00:00 -0400

FRAZER, Pa., April 24 /PRNewswire-FirstCall/ -- Cephalon, Inc., (Nasdaq: CEPH) today announced its receipt of a Paragraph IV Certification Notice Letter relating to an Abbreviated New Drug Application (ANDA) submitted to the U.S. Food and Drug Administration (FDA) by Watson Laboratories, Inc., requesting approval to market and sell a generic version of FENTORA(R) (fentanyl buccal tablet) [C-II]. In its Notice Letter, Watson alleges that the U.S. Patent Numbers 6,200,604 and 6,974,590 covering FENTORA are invalid, unenforceable and/or will not be infringed by Watson's manufacture, use or sale of the product described in its ANDA.

Cephalon currently is reviewing the Notice Letter and, by statute, has 45 days to initiate a patent infringement lawsuit against Watson. Such a lawsuit would automatically prevent the FDA from approving the Watson ANDA until the earlier of a district court decision or 30 months from the company's receipt of the Notice Letter.

Cephalon has a three-year period of marketing exclusivity for FENTORA that extends until September 2009. Additionally, the method of use patents described above expire in 2019.

About Cephalon, Inc.

The company's proprietary products in the United States include: PROVIGIL(R) (modafinil) Tablets [C-IV], TREANDA(R) (bendamustine hydrochloride), FENTORA, TRISENOX(R) (arsenic trioxide) injection, AMRIX(R) (cyclobenzaprine hydrochloride extended-release capsules), VIVITROL(R) (naltrexone for extended-release injectable suspension), GABITRIL(R) (tiagabine hydrochloride), NUVIGIL(TM) (armodafinil) Tablets [C-IV] and ACTIQ(R) (oral transmucosal fentanyl citrate) [C-II]. The company also markets numerous products internationally. Full prescribing information on its U.S. products is available at www.cephalon.com or by calling 1-800- 896-5855.

In addition to historical facts or statements of current condition, this press release may contain forward-looking statements. Forward-looking statements provide Cephalon'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; interpretation of clinical results; prospects for regulatory approval; manufacturing development and capabilities; legal matters, including whether the company will initiate a patent infringement lawsuit against Watson; market prospects for its products; sales, adjusted net income and basic adjusted income per common share guidance; 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. Cephalon'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 facing Cephalon such as those set forth 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 should not rely on any such factors or forward-looking statements. Furthermore, Cephalon does not intend to update publicly any forward-looking statement, except as required by law. The Private Securities Litigation Reform Act of 1995 permits this discussion.

SOURCE Cephalon, Inc.

CONTACT: Media, Candace Steele, +1-610-727-6231, csteele@cephalon.com; or Investors, Robert (Chip) Merritt, +1-610-738-6376, cmerritt@cephalon.com, both of Cephalon, Inc.