Exhibit 99.1

	News
	Contacts: Media: Sheryl Williams 610.738.6493 swilliam@cephalon.com Investors: Robert (Chip) Merritt 610.738.6376 cmerritt@cephalon.com

For Immediate Release

Cephalon Reports Record Sales and Earnings for 2006

Company Updates 2007 Guidance;

Introduces First Quarter 2007 Guidance

Frazer, Pa. – February 12, 2007 – Cephalon, Inc. (Nasdaq: CEPH) today reported 2006 revenue of $1.76 billion, a 46 percent increase compared with 2005 revenue of $1.21 billion.  Adjusted sales for the year were $1.71 billion, a 48 percent increase over 2005 sales of $1.16 billion and $32 million higher than the company’s previously issued guidance.  Basic income per common share for the year was $2.39.  Excluding amortization and certain other items, basic adjusted income per common share was $5.54, a 92 percent increase over the comparable figure in 2005 of $2.88 and $0.34 higher than the company’s guidance.

Central nervous system (CNS) franchise adjusted sales for 2006 increased 34 percent to $786.3 million and pain franchise adjusted sales increased 59 percent to $656.2 million. Adjusted sales of other products were $264.4 million, an increase of 66 percent.

 “We delivered exceptionally strong performance in 2006,” said Frank Baldino, Jr., Ph.D., Chairman and CEO.  “We successfully transitioned our pain franchise to FENTORA™, our next generation rapid-onset opioid, and accelerated the remarkable growth of PROVIGIL® even after eight years on the market.  As we look to the future, we believe that the development of our promising oncology pipeline will provide an additional platform for our continued growth.”

— more —

SOURCE:  Cephalon, Inc. · 41 Moores Road · Frazer, PA  19355 · (610) 344-0200 · Fax (610) 344-0065

The company is raising its 2007 basic adjusted income per common share guidance by $0.03 per share to $3.90 - $4.00 (including the impact of SFAS 123R).  Total sales guidance for 2007 remains at $1.675 - $1.725 billion and is now comprised of CNS franchise sales of $950 - $975 million, pain franchise sales of $375 - $400 million and other product sales of $325 - $350 million.  SG&A and R&D guidance for 2007, including $30 million of SFAS 123R expense, is $695 - $725 million and $325 - $345 million, respectively.  The company’s adjusted net income guidance for 2007 is $259 - $265 million.

For the first quarter of 2007, the company is introducing sales guidance of $400 - $410 million, adjusted net income guidance of $59 - $66 million and basic adjusted income per common share guidance of $0.90 - $1.00.

Sales and basic adjusted income per common share guidance for the first-quarter of 2007 and full-year 2007 is reconciled below.

Cephalon’s management will discuss the company’s full-year 2006 performance in a conference call with investors beginning at 5:00 p.m. U.S. EDT on Monday, February 12, 2007.  To participate in the conference call, dial +1-913-981-4901 and refer to conference code number 7192405. Investors can listen to the call live by logging on to the company’s website at www.cephalon.com and clicking on “Newsroom,” then “Webcast.”  The conference call will be archived and available to investors for one week after the call.

Cephalon, Inc.

Founded in 1987, Cephalon, Inc. is an international biopharmaceutical company dedicated to the discovery, development and marketing of innovative products in four core therapeutic areas: central nervous system, pain, oncology and addiction. Cephalon currently employs approximately 3,000 people in the United States and Europe. U.S. sites include the company’s headquarters in Frazer, Pennsylvania, and offices, laboratories or manufacturing facilities in West Chester, Pennsylvania, Salt Lake City, Utah, and suburban Minneapolis, Minnesota. Cephalon’s European headquarters are located in Maisons-Alfort, France.

The company currently markets six proprietary products in the United States: PROVIGIL® (modafinil) Tablets [C-IV], FENTORA™ (fentanyl buccal tablet) [C-II], TRISENOX® (arsenic trioxide), VIVITROL® (naltrexone for extended-release injectable suspension), GABITRIL® (tiagabine hydrochloride), and ACTIQ® (oral transmucosal fentanyl citrate) [C-II], and numerous products internationally. Full prescribing information on its U.S. products is available at http://www.cephalon.com or by calling 1-800-896-5855.

In addition to historical facts or statements of current condition, this press release may contain forward-looking statements.  Forward-looking statements provide Cephalon’s current expectations or forecasts of future events.  These may include statements regarding anticipated scientific progress on its research programs; development of potential pharmaceutical products, including the development of its oncology pipeline; interpretation of clinical results; prospects for regulatory approval; manufacturing development and capabilities; market prospects for its products; sales, adjusted net income and basic adjusted income per common share guidance for the first quarter and full-year 2007; and other statements regarding matters that are not historical facts, including the Company’s position and expected performance in 2007.  You may identify some of these forward-looking statements by the use of words in the statements such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” or

other words and terms of similar meaning.  Cephalon’s performance and financial results could differ materially from those reflected in these forward-looking statements due to general financial, economic, regulatory and political conditions affecting the biotechnology and pharmaceutical industries as well as more specific risks and uncertainties facing Cephalon such as those set forth in its reports on Form 8-K, 10-Q and 10-K filed with the U.S. Securities and Exchange Commission.  Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect.  Therefore, you should not rely on any such factors or forward-looking statements.  Furthermore, Cephalon does not intend to update publicly any forward-looking statement, except as required by law.  The Private Securities Litigation Reform Act of 1995 permits this discussion.

This press release and/or the financial results attached to this press release include “Adjusted Net Income,” “Basic Adjusted Income per Common Share,” “Basic Adjusted Income per Common Share Guidance,” and “Diluted Adjusted Income Per Common Share,” amounts that are considered “non-GAAP financial measures” under SEC rules. As required, we have provided reconciliations of these measures. Additional required information is located in the Form 8-K furnished to the SEC in connection with this press release.

# # #

CEPHALON, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended									Three Months Ended
	December 31, 2006									December 31, 2005
	GAAP			Adjustments			"Adjusted"			GAAP			Adjustments			"Adjusted"
REVENUES:
Sales	$	473,347					$	473,347		$	322,930					$	322,930
Other revenues	11,335						11,335			13,474						13,474
	484,682			$	—		484,682			336,404			$	—		336,404
COSTS AND EXPENSES:
Cost of sales	67,213						67,213			50,130						50,130
Research and development	123,602			(39,218		)(1)	84,384			99,235			(3,944		)(1)	95,291
Selling, general and administrative	215,508			(3,718		)(2)	211,790			140,957			(13,192		)(2)	127,765
Depreciation and amortization	30,522			(20,958		)(3)	9,564			23,154			(15,473		)(3)	7,681
Impairment charge	—						—			20,820			(20,820		)(7)	—
Acquired in-process research and development	5,000			(5,000		)(4)	—			71,200			(71,200		)(4)	—
	441,845			(68,894		)	372,951			405,496			(124,629		)	280,867
INCOME (LOSS) FROM OPERATIONS	42,837			68,894			111,731			(69,092		)	124,629			55,537
OTHER INCOME (EXPENSE):
Interest income	8,702						8,702			6,612						6,612
Interest expense	(5,399		)				(5,399		)	(5,924		)				(5,924		)
Debt exchange expense	(48,122		)	48,122		(5)	—			—						—
Write-off of deferred debt issuance costs	—						—			(27,109		)	27,109		(8)	—
Other income (expense), net	(1,056		)				(1,056		)	(55		)				(55		)
	(45,875		)	48,122			2,247			(26,476		)	27,109			633
INCOME (LOSS) BEFORE INCOME TAXES	(3,038		)	117,016			113,978			(95,568		)	151,738			56,170
INCOME TAX EXPENSE (BENEFIT)	1,871			33,736		(6)	35,607			(113,641		)	127,097		(6)	13,456
NET INCOME (LOSS)	$	(4,909	)	$	83,280		$	78,371		$	18,073		$	24,641		$	42,714
BASIC INCOME (LOSS) PER COMMON SHARE	$	(0.08	)				$	1.27		$	0.31					$	0.74
DILUTED INCOME (LOSS) PER COMMON SHARE	$	(0.08	)				$	1.06		$	0.30					$	0.71
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING	61,783						61,783			58,099						58,099
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-ASSUMING DILUTION	61,783						73,633			60,351						60,351

CEPHALON, INC. AND SUBSIDIARIES

Notes to Reconciliation of GAAP Net Income (Loss) to "Adjusted" Net Income

Three Months Ended December 31, 2006 and December 31, 2005

(1)In 2006, to exclude charges related to payments for several research and development collaborations ($35.5 million) and the net impact of the adoption of the new stock compensation accounting rules ($3.7 million, representing half of the total stock option compensation expense recorded based on the employees' compensation allocation).  In 2005, to exclude the write-off of an investment in a development stage company ($1.0 million) and the restructuring of certain research and development activities at Cephalon France ($2.9 million).

(2)In 2006, to exclude charges related to the net impact of the adoption of the new stock compensation accounting rules (representing half of the total stock option compensation expense recorded based on the employees' compensation allocation).  In 2005, to exclude charges relating to the termination of Salmedix's facility lease ($2.6 million) and the settlement of the PROVIGIL patent litigation ($10.6 million).

(3)To exclude the on-going amortization of acquired intangible assets.

(4)In 2006, to exclude the write-off of other acquired in-process research and development.  In 2005, to exclude the write-off of acquired in-process research and development related to the acquisition of Zeneus.

(5)To exclude the debt exchange expense associated with the December 2006 exchanges of $337.0 million of zero coupon convertible subordinated notes and $100.0 million of 2% senior subordinated convertible notes.

(6)In 2006, to reflect the tax effect of pre-tax adjustments at the applicable tax rates and certain other tax adjustments primarily related to changes in valuation allowances and other changes in liabilities.  In 2005, to reflect the tax effect of adjustments at the applicable tax rates and $95.5 million of tax benefits due to the reassessment of the realizability of deferred tax assets.

(7)To exclude the write-off of an intangible asset due to the expected termination of a distribution agreement in the United Kingdom.

(8)To exclude the write-off of deferred debt issuance costs related to the 2% senior subordinated convertible notes.

CEPHALON, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Year Ended									Year Ended
	December 31, 2006									December 31, 2005
	GAAP			Adjustments			"Adjusted"			GAAP			Adjustments			"Adjusted"
REVENUES:
Sales	$	1,720,172		$	(13,273	)(1)	$	1,706,899		$	1,156,518					$	1,156,518
Other revenues	43,897						43,897			55,374						55,374
	1,764,069			(13,273		)	1,750,796			1,211,892			$	—		1,211,892
COSTS AND EXPENSES:
Cost of sales	257,061			(8,610		)(2)	248,451			164,223						164,223
Research and development	403,367			(95,772		)(3)	307,595			354,826			(3,944		)(3)	350,882
Selling, general and administrative	675,576			(25,259		)(4)	650,317			443,861			(13,192		)(4)	430,669
Depreciation and amortization	116,511			(81,723		)(5)	34,788			84,305			(57,651		)(5)	26,654
Impairment charges	12,417			(12,417		)(6)	—			20,820			(20,820		)(6)	—
Acquired in-process research and development	5,000			(5,000		)(7)	—			366,815			(366,815		)(7)	—
	1,469,932			(228,781		)	1,241,151			1,434,850			(462,422		)	972,428
INCOME (LOSS) FROM OPERATIONS	294,137			215,508			509,645			(222,958		)	462,422			239,464
OTHER INCOME (EXPENSE):
Interest income	25,438						25,438			26,171						26,171
Interest expense	(18,922		)				(18,922		)	(25,235		)				(25,235		)
Debt exchange expense	(48,122		)	48,122		(8)	—			—						—
Write-off of deferred debt issuance costs	(13,105		)	13,105		(9)	—			(27,109		)	27,109		(9)	—
Gain on early extinguishment of debt	—						—			2,085			(2,085		)(11)	—
Other income (expense), net	(1,172		)				(1,172		)	1,928						1,928
	(55,883		)	61,227			5,344			(22,160		)	25,024			2,864
INCOME (LOSS) BEFORE INCOME TAXES	238,254			276,735			514,989			(245,118		)	487,446			242,328
INCOME TAX EXPENSE (BENEFIT)	93,438			86,583		(10)	180,021			(70,164		)	145,375		(10)	75,211
NET INCOME (LOSS)	$	144,816		$	190,152		$	334,968		$	(174,954	)	$	342,071		$	167,117
BASIC INCOME (LOSS) PER COMMON SHARE	$	2.39					$	5.54		$	(3.01	)				$	2.88
DILUTED INCOME (LOSS) PER COMMON SHARE	$	2.08					$	4.81		$	(3.01	)				$	2.76
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING	60,507						60,507			58,051						58,051
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING-ASSUMING DILUTION	69,672						69,672			58,051						62,073

CEPHALON, INC. AND SUBSIDIARIES

Notes to Reconciliation of GAAP Net Income (Loss) to "Adjusted" Net Income

Years Ended December 31, 2006 and December 31, 2005

(1)To exclude the U.S. Department of Defense ("DoD") Tricare program reversal as a result of the U.S. Court of Appeals September 2006 ruling.

(2)To exclude the reserve for SPARLON capitalized inventory costs.

(3)In 2006, to exclude charges related to payments for several research and development collaborations ($80.5 million) and the net impact of the adoption of the new stock compensation accounting rules ($15.3 million, representing half of the total stock option compensation expense recorded based on the employees' compensation allocation).  In 2005, to exclude the write-off of an investment in a development stage company ($1.0 million) and the restructuring of certain research and development activities at Cephalon France ($2.9 million).

(4)In 2006, to exclude charges associated with the settlement of the PROVIGIL patent litigation ($6.0 million), employee severance costs associated with the European integration and restructuring ($4.0 million) and the net impact of the adoption of the new stock compensation accounting rules ($15.3 million, representing half of the total stock option compensation expense recorded based on the employees' compensation allocation).  In 2005, to exclude charges relating to the termination of Salmedix's facility lease ($2.6 million) and the settlement of the PROVIGIL patent litigation ($10.6 million). 

(5)To exclude the on-going amortization of acquired intangible assets.

(6)In 2006, to exclude charges related to the impairment of an intangible asset.  In 2005, to exclude the write-off of an intangible asset due to the expected termination of a distribution agreement in the United Kingdom. 

(7)In 2006, to exclude the write-off of other acquired in-process research and development.  In 2005, to exclude the write-off of acquired in-process research and development related to the acquisition of Salmedix ($130.1 million), VIVITROL product rights ($160.0 million), Zeneus ($71.2 million) and other ($5.5 million).

(8)To exclude the debt exchange expense associated with the December 2006 exchanges of $337.0 million of zero coupon convertible subordinated notes and $100.0 million of 2% senior subordinated convertible notes.

(9)In 2006, to exclude the write-off of deferred debt issuance costs related to the Zero Coupon convertible subordinated notes.  In 2005, to exclude the write-off of deferred debt issuance costs related to the 2% senior subordinated convertible notes.

(10)In 2006, to reflect the tax effect of pre-tax adjustments at the applicable tax rates and certain other tax adjustments primarily related to changes in valuation allowances and other changes in liabilities.  In 2005, to reflect the tax effect of adjustments at the applicable tax rates and $46.0 million of tax benefits due to the reassessment of the realizability of deferred tax assets.

(11)To exclude the gain on early extinguishment of debt related to the repurchase of $511.7 million of our 2.5% convertible subordinated notes due December 2006.

CEPHALON, INC. AND SUBSIDIARIES

"ADJUSTED" CONSOLIDATED SALES DETAIL

(In thousands)

(Unaudited)

	Three Months Ended														%
	December 31,												Increase
	2006						2005						(Decrease)
	United States		Europe		Total		United States		Europe		Total		United States		Europe		Total
Sales:
PROVIGIL	$	190,838	$	13,833	$	204,671	$	137,028	$	11,239	$	148,267	39	%	23	%	38	%
GABITRIL	12,805		806		13,611		12,494		1,179		13,673		2	%	(32	)%	0	%
CNS	203,643		14,639		218,282		149,522		12,418		161,940		36	%	18	%	35	%
ACTIQ	100,882		8,039		108,921		112,571		5,198		117,769		(10	)%	55	%	(8	)%
Generic OTFC	46,630		—		46,630		—		—		—		100	%	100	%	100	%
FENTORA	29,250		—		29,250		—		—		—		100	%	100	%	100	%
Pain	176,762		8,039		184,801		112,571		5,198		117,769		57	%	55	%	57	%
Other	14,423		55,841		70,264		13,376		29,845		43,221		8	%	87	%	63	%
	$	394,828	$	78,519	$	473,347	$	275,469	$	47,461	$	322,930	43	%	65	%	47	%

	Year Ended														%
	December 31,												Increase
	2006						2005						(Decrease)
	United States		Europe		Total		United States		Europe		Total		United States		Europe		Total
Sales:
PROVIGIL	$	684,885	$	43,052	$	727,937	$	475,557	$	37,248	$	512,805	44	%	16	%	42	%
GABITRIL	54,096		4,316		58,412		66,517		5,741		72,258		(19	)%	(25	)%	(19	)%
CNS	738,981		47,368		786,349		542,074		42,989		585,063		36	%	10	%	34	%
ACTIQ	544,886		27,252		572,138		394,676		17,102		411,778		38	%	59	%	39	%
Generic OTFC	54,801		—		54,801		—		—		—		100	%	100	%	100	%
FENTORA	29,250		—		29,250		—		—		—		100	%	100	%	100	%
Pain	628,937		27,252		656,189		394,676		17,102		411,778		59	%	59	%	59	%
Other	56,084		208,277		264,361		49,695		109,982		159,677		13	%	89	%	66	%
	$	1,424,002	$	282,897	$	1,706,899	$	986,445	$	170,073	$	1,156,518	44	%	66	%	48	%

NOTE:  For the year ended December 31, 2006, amounts exclude the impact of the DoD Tricare program reversal of $13.3 million which reduced GAAP U.S. sales of PROVIGIL, GABITRIL and ACTIQ by $6.9 million, $0.9 million and $5.5 million, respectively.

CEPHALON, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

	December 31,			December 31,
	2006			2005
CURRENT ASSETS:
Cash and cash equivalents	$	496,512		$	205,060
Investments	25,212			279,030
Receivables, net	270,045			199,086
Inventory, net	174,300			137,886
Deferred tax assets, net	184,518			187,436
Other current assets	47,278			40,339
Total current assets	1,197,865			1,048,837
PROPERTY AND EQUIPMENT, net	453,010			323,830
GOODWILL	467,167			471,051
INTANGIBLE ASSETS, net	793,037			742,874
DEFERRED TAX ASSETS, net	118,192			200,629
OTHER ASSETS	16,226			31,985
	$	3,045,497		$	2,819,206
CURRENT LIABILITIES:
Current portion of long-term debt	$	1,023,312		$	933,160
Accounts payable	90,586			53,699
Accrued expenses	263,478			291,744
Total current liabilities	1,377,376			1,278,603
LONG-TERM DEBT	224,992			763,097
DEFERRED TAX LIABILITIES, net	72,491			110,703
OTHER LIABILITIES	61,178			54,632
Total liabilities	1,736,037			2,207,035
STOCKHOLDERS' EQUITY:
Common stock, $0.01 par value	678			584
Additional paid-in capital	1,780,749			1,166,166
Treasury stock, at cost	(151,068		)	(17,125		)
Accumulated deficit	(425,256		)	(570,072		)
Accumulated other comprehensive income	104,357			32,618
Total stockholders' equity	1,309,460			612,171
	$	3,045,497		$	2,819,206

CEPHALON, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Year Ended
	December 31,
	2006			2005
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	144,816		$	(174,954	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred income tax expense (benefit)	62,958			(31,389		)
Tax benefit from stock-based compensation	—			5,826
Debt exchange expense	48,122			—
Depreciation and amortization	126,531			89,967
Amortization of debt issuance costs	493			7,301
Write-off of debt issuance costs associated with convertible subordinated notes	13,105			27,109
Stock-based compensation expense	42,807			10,784
Non-cash gain on early extinguishment of debt	—			(4,549		)
Loss on disposals of property and equipment	3,292			1,107
Impairment charges	12,417			20,820
Acquired in-process research and development	—			201,815
Changes in operating assets and liabilities, net of effect from acquisitions:
Receivables	(63,932		)	35,070
Inventory	(21,796		)	(44,167		)
Other assets	2,509			(36,528		)
Accounts payable, accrued expenses and deferred revenues	(19,764		)	94,523
Other liabilities	(31,641		)	(17,004		)
Net cash provided by operating activities	319,917			185,731
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(159,917		)	(118,050		)
Acquisition of Salmedix, net of cash acquired	—			(130,733		)
Acquisition of TRISENOX	—			(69,722		)
Acquisition of Zeneus, net of cash acquired	—			(365,786		)
Acquisition of intangible assets	(115,850		)	(33,459		)
Sales and (purchases) of investments, net	255,391			(62,730		)
Net cash used for investing activities	(20,376		)	(780,480		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercises of common stock options	143,491			11,460
Windfall tax benefits from stock-based compensation	27,189			—
Acquisition of treasury stock	(4,418		)	(2,265		)
Payments on and retirements of long-term debt	(188,886		)	(504,113		)
Net proceeds from issuance of convertible subordinated notes	—			891,949
Proceeds from sale of warrants	—			217,071
Purchase of convertible note hedge	—			(382,261		)
Net cash provided by (used for) financing activities	(22,624		)	231,841
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	14,535			(6,276		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	291,452			(369,184		)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	205,060			574,244
CASH AND CASH EQUIVALENTS, END OF YEAR	$	496,512		$	205,060

CEPHALON, INC. AND SUBSIDIARIES

Reconciliation of Projected GAAP Basic Income per Common Share

to Basic Adjusted Income Per Common Share Guidance

(Unaudited)

	Three Months Ended							Twelve Months Ended
	March 31, 2007							December 31, 2007
Projected GAAP basic income per common share	$	0.69		—	$	0.79		$	3.07		—	$	3.17
Amortization of current intangibles	$	0.32		—	$	0.32		$	1.28		—	$	1.28
Tax effect of pre-tax adjustments at the applicable tax rates	$	(0.11	)	—	$	(0.11	)	$	(0.45	)	—	$	(0.45	)
Basic adjusted income per common share guidance	$	0.90		—	$	1.00		$	3.90		—	$	4.00

The Company’s guidance is being issued based on certain assumptions including:

·Adjusted effective tax rate of approximately 35 percent for 2007; and

·Weighted average number of common shares outstanding of 66.0 million shares for the three months ended March 31, 2007 and 66.3 million shares for the twelve months ended December 31, 2007.