UPDATE 1-Cephalon quarterly profit falls short of estimates

Tue Aug 2, 2011 7:02pm EDT

* Adjusted EPS $1.62 vs Street view $2.06

* Revenue rises 1.6 pct to $738.3 million

LOS ANGELES Aug 2 (Reuters) - Drugmaker Cephalon Inc CEPH.O, which is being acquired by Teva Pharmaceutical Industries Ltd (TEVA.TA), reported lower-than-expected quarterly earnings as revenue fell short of Wall Street estimates and costs rose.

Second-quarter sales of Cephalon's central nervous system drugs, including sleep drug Provigil, fell 5 percent from a year earlier to $332.3 million. Spending on research and development rose 33 percent to $134.8 million.

The company reported on Tuesday a net profit of $115.2 million, or $1.34 per share, compared with $92.4 million, or $1.11 per share, a year earlier.

Excluding one-time items, earnings were $1.62 per share, which fell short of the average analyst estimate of $2.06, according to Thomson Reuters I/B/E/S.

Revenue rose 1.6 percent to $738.3 million, which also missed Wall Street estimates of $764.4 million.

The shares of Cephalon, which agreed in May to be acquired by Teva for $6.8 billion, or $81.50 per share, were unchanged at $79.95 in after hours trading.

"We continue to work with both U.S. and European authorities to obtain all necessary regulatory approvals in order to close the transaction with Teva," Cephalon Chief Executive Kevin Buchi said in a statement. (Reporting by Deena Beasley; editing by Andre Grenon)

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