Cephalon Making Progress

Cephalon Inc. (CEPH) is an international biopharmaceutical company focused on the treatment of sleep disorder, neurological disorders, cancer and pain. The settlement of all Provigil patent infringement cases has been a significant positive for Cephalon.

With Provigil protected from the entry of generics until April 2012, we believe that investor focus will shift towards the company’s emerging oncology pipeline and Amrix. Amrix should be a major contributor to revenues going forward. Cephalon has also made significant progress with its oncology pipeline. We are pleased to see that Treanda, Cephalon’s lead oncology candidate, is off to a strong start.

Other potential positive catalysts going forward could be favorable data on CEP-701, the continued strong uptake of Treanda and Amrix and a steady stream of favorable data on Nuvigil and Treanda. We rate the stock a Hold with a target price of $75, which is based on 12.5x our 2009 earnings estimate of $5.99 per diluted share.

Arpita Dutt, CA, contributed to the report

Read the full analyst report on CEPH

Read the full analyst report on CEPH