Cephalon, Inc.
Cephalon, Inc. is an international biopharmaceutical company dedicated to
the discovery, development and marketing of innovative products to treat human
diseases. We currently focus our efforts in four core therapeutic areas: central
nervous system ("CNS") disorders, pain, oncology and addiction. In
addition to conducting an active research and development program, we market
seven proprietary products in the United States and numerous products in various
countries throughout Europe. Consistent with our core therapeutic areas, we
have aligned our approximately 690-person U.S. field sales and sales management
teams by area. In Europe, we have a sales and marketing organization numbering
approximately 400 persons that supports our presence in nearly 20 European countries,
including France, the United Kingdom, Germany, Italy and Spain.
Our most significant product is PROVIGIL® (modafinil) Tablets [C-IV].
PROVIGIL is indicated for the treatment of excessive sleepiness associated with
narcolepsy, obstructive sleep apnea/hypopnea syndrome ("OSA/HS") and
shift work sleep disorder ("SWSD"). We co-promote PROVIGIL in the
United States with our partner, Takeda Pharmaceuticals North America, Inc. Together
with our CNS field sales team, we now have approximately 900 persons focused
on detailing PROVIGIL in the United States.
Our two next most significant products are FENTORA® (fentanyl buccal tablet)
[C-II] and ACTIQ® (oral transmucosal fentanyl citrate) [C-II] (including
our generic version of ACTIQ ("generic OTFC")).
CUSTOMERS
Our principal customers are wholesale drug distributors. These customers comprise
a significant part of the distribution network for all pharmaceutical products
in the United States. Three large wholesale drug distributors, Cardinal Health,
Inc., McKesson Corporation and AmerisourceBergen Corporation, control a significant
share of this network. These three wholesale customers, in the aggregate, accounted
for 66% of our total consolidated gross sales for the year ended December 31,
2007.
COMPETITION
We face intense competition and rapid technological change in the pharmaceutical
marketplace. Large and small companies, academic institutions, governmental
agencies, and other public and private research organizations conduct research,
seek patent protection and establish collaborative arrangements for product
development in competition with us. Products developed by any of these entities
may compete directly with those we develop or sell. In addition, many of the
companies and institutions that compete against us have substantially greater
capital resources, research and development staffs and facilities than we have,
and substantially greater experience in conducting clinical trials, obtaining
regulatory approvals and manufacturing and marketing pharmaceutical products.
These entities represent significant competition for us. Our products also face
potential competition from companies seeking to develop and sell generic formulations
of our products at a substantial price discount to the current price of our
products. In addition, competitors who are developing products for the treatment
of neurological or oncological disorders might succeed in developing technologies
and products that are more effective than any that we develop or sell or that
would render our technology and products obsolete or noncompetitive. Competition
and innovation from these or other sources potentially could negatively affect
sales of our products or make them obsolete. Advances in current treatment methods
also may adversely affect the market for such products. In addition, we may
be at a competitive marketing disadvantage against companies that have broader
product lines and whose sales personnel are able to offer more complementary
products than we can. Any failure to maintain our competitive position could
adversely affect our business and results of operations.