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Hyperactivity drug fails trial
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August 1, 2000: 12:51 a.m. ET
Shares of biotech firm Cephalon slide nearly 40% after study is released
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NEW YORK (CNNfn) - A drug designed to treat attention deficit disorder in adults has shown no significant benefits in a clinical trial, biotech firm Cephalon Inc. disclosed Monday. The company's shares slid nearly 40 percent in response to the disappointing results.
The West Chester, Pa.-based company already markets the drug, Provigil, in the United States and Europe for the treatment of narcolepsy, a condition characterized by brief attacks of deep sleep.
But Cephalon (CEPH: Research, Estimates) hoped to win approval of Provigil for a broad new use - treatment of attention deficit hyperactivity disorder (ADHD) in adults. However, the company said a trial of 113 adults found that compared to a placebo, the medication showed no benefit in reducing symptoms of the disorder. The drug, however, was well tolerated.
 The company still hopes to win regulatory approval for use of the drug to combat excessive sleepiness associated with sleep apnea and fatigue in multiple sclerosis patients.
In morning trading, Cephalon shares sank 24-3/16 to 38-9/16. Over the past year, shares have shot up to as high as 83-5/8 from a low of 14.
Sales of Provigil totaled $13.5 million in the first quarter of the year, an increase of 31 percent over the fourth quarter of 1999. The drug was launched in the United States in February 1999. The company also developed the seizure treatment Gabitril, which is jointly marketed with Abbott Laboratories (ABT: Research, Estimates).
Cephalon agreed earlier this month to merge with cancer treatment firm Anesta Corp. (NSTA: Research, Estimates) in an all-stock deal worth roughly $444 million. Anesta makes the drug Actiq, a treatment for cancer pain.
Anesta stock also was hard hit Monday morning. Shares dropped 11-3/4, or 40 percent, to 17-13/16.
Cephalon lost $11.8 million, or 36 cents per share, in the first quarter, compared with a loss of $19.9 million, or 69 cents per share, in the 1999 period. The results excluded one-time items. 
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Cephalon
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