to our stockholders

Cephalon reached an important milestone this year as we celebrated 20 years in business. For two decades we have successfully executed on our vision to research and develop medicines for difficult-to-treat medical problems, to bring innovative new medicines to physicians and patients and to deliver growth that rewards stockholders. From the inception of our company, we were determined to create lasting value by building a sustainable business, and with 20 years under our belt, it is a vision realized.

As a scientist, I know that drug discovery and development requires bold vision, strong discipline and unwavering commitment. As a businessman and entrepreneur, I understand that not all of our efforts will lead to marketed products. Therefore, to advance our business goals, we have a multi-prong strategy that includes ongoing investments in R&D programs, forming strategic partnerships and purchasing additional assets through mergers and acquisitions. This vision and our execution have made Cephalon one of the fastest-growing companies of its kind in the world.

In 2007, we again delivered exceptional earnings performance, exceeding the high end of both our sales and adjusted net income guidance for the year. Our research and development activities were very productive enabling us to move forward both the development of some of our marketed products and our exciting oncology pipeline.