Cephalon Disappointed by FTC Action on PROVIGIL Patent Settlements

Cephalon issued a press release yesterday, February 13, 2008, that reads, in part:

Cephalon, Inc., (Nasdaq: CEPH) issued the following statement in response to a complaint filed today by the U.S. Federal Trade Commission (FTC) in U.S. District Court for the District of Columbia challenging the validity of certain agreements entered into by the company in late 2005 and early 2006 to settle the PROVIGIL(R) (modafinil) [C-IV] patent infringement litigation and seeking to permanently enjoin the Company from maintaining or enforcing these agreements.

Cephalon stands by the strength and validity of our PROVIGIL patents and the legal basis for these settlements. We are disappointed that the FTC has determined to challenge these agreements as we believe they fully comply with both the spirit and letter of the antitrust laws. As importantly, our settlements confer a meaningful benefit to U.S. consumers by providing for the entry of generic modafinil three years early.

Cephalon is prepared to vigorously defend itself in this matter and expects to prevail.

Thanks to the reader who alerted me to this release.