Cephalon's (NASDAQ:CEPH) Nuvigil Will Have No New Claims in 2012

After having their latest attempt to expand the uses of Nuvigil rejected by the Food and Drug Administration, Cephalon (NASDAQ:CEPH) will have no new uses for Nuvigil when Provigil loses its protection and becomes generic.

Baird said, "We don't view this as a big surprise or major revenue opportunity off-the-table. It does, however, confirm Nuvigil will have no differentiated label claims in April 2012 when predecessor product Provigil goes generic. Recalling the tale, it is an "emperor" with no "new clothes." We expect the payer overhang to only increase over the next 1.5 years."

Baird maintains a "Neutral" rating on Cephalon, which closed Monday at $63.49, down $0.51, or 0.80 percent. They have a price target of $64 on them.