Forest Laboratories, Inc. Reports Fiscal First Quarter 2007 Results
July 18 2006 - 8:58AM
PR Newswire (US)
NEW YORK, July 18 /PRNewswire-FirstCall/ -- Forest Laboratories,
Inc. (NYSE:FRX), an international pharmaceutical manufacturer and
marketer, today announced that fully diluted earnings per share
equaled $0.62 in the first quarter of fiscal 2007. Reported
earnings included a licensing charge of $60 million and an $8.8
million charge for stock option expense in accordance with the
adoption of Statement of Financial Accounting Standard 123R.
Reported earnings per share in the year-ago period were $0.62,
which included a gain of $36.4 million due to a one-time tax
reversal related to the American Jobs Creation Act of 2004. (Logo:
http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO ) Net
revenues for the quarter increased 15% to $816,338,000 from
$711,766,000 in the year-ago period. Net revenues were comprised of
net sales, which increased 12% to $758,768,000 from $674,653,000 in
the prior year. Sales in the quarter included $507,033,000 for
Lexapro(R) (escitalopram oxalate), our SSRI for the treatment of
depression and anxiety in adults, an increase of 10% from the
year-ago period. Namenda(R), our NMDA receptor antagonist for the
treatment of moderate and severe Alzheimer's disease, recorded
sales of $151,082,000 during the quarter, growth of 32% from last
year. Also included in net revenues was other income of $57,570,000
which includes $41,717,000 in earnings contribution from the
Benicar(R)* (olmesartan medoxomil) co-promotion agreement, an
increase of 72%. The remaining component of other income was
principally interest income. Net income in the current quarter
decreased 7% to $200,607,000 from $216,577,000 in the first quarter
of the prior fiscal year. Excluding the $36.4 million one-time tax
reversal from the year-ago period and the stock option expense in
the current quarter, net income in the current quarter increased
15%. Selling, general and administrative expense decreased 9% to
$244,383,000. The year-ago selling, general and administrative
comparison included spending on a national sales meeting and two
product launches. Research and development spending increased 147%
to $139,082,000. Research and development spending included a
license payment of $60,000,000 to Almirall for the U.S. rights to
LAS34273, a compound being investigated for the treatment of
Chronic Obstructive Pulmonary Disease. Fully diluted shares
outstanding at June 30, 2006 were 325,915,000, a reduction of 22.1
million shares compared to the year-ago period due mainly to the
Company's ongoing share repurchase program. During the
just-completed quarter, the Company repurchased approximately 1.9
million shares leaving an additional 23.1 million shares available
for repurchase under the existing program, which has no expiration
date. Fiscal 2007 Guidance Based on slightly better than expected
performance during the just-completed quarter and projected
accretion from the share repurchase authorization, the Company has
increased its projected range for reported earnings per share for
the fiscal year ending March 31, 2007 to $2.45-$2.50 from
$2.37-$2.42. Howard Solomon, Chairman and Chief Executive Officer
of Forest, said: "During the quarter we continued to advance on two
important areas in support of sustaining long-term growth prospects
for the Company. Regarding currently marketed products, our key
promoted products all increased their respective prescription
volume and revenue and we saw a continuation of strong underlying
prescription growth in each of these product's underlying markets.
Also, we continued to make progress with our product pipeline as
all of our current products advanced in the development process.
The Company currently has two new products under FDA review,
nebivolol, a beta blocker for the treatment of hypertension and
faropenem, an oral antibiotic for the treatment of upper
respiratory and skin infections, four additional products in or
about to commence Phase III clinical testing, and a number of other
products in stages between pre-clinical and Phase II testing. As
always we continue to evaluate several interesting new product
development opportunities to augment our strengthened product
pipeline." Mr. Solomon added: "We are very pleased with last week's
Federal District Court ruling indicating that the Lexapro patent is
valid, enforceable and infringed by a proposed product. This
decision is clearly consistent with our long held view that the
Lexapro patent is a strong patent." Forest will host a conference
call at 10:00 AM EDT today to discuss the results. The conference
call will be webcast live beginning at 10:00 AM EDT on the
Company's website at http://www.frx.com/ and also on the website
http://www.streetevents.com/. Please log on to either website at
least fifteen minutes prior to the conference call as it may be
necessary to download software to access the call. A replay of the
conference call will be available until July 31, 2006 at both
websites and also by dialing (800) 642-1687 (US or Canada) or +1
706 645-9291 (International). Conference ID: 2884693. About Forest
Laboratories and Its Products Forest Laboratories
(http://www.frx.com/) is a US-based pharmaceutical company
dedicated to identifying, developing, and delivering products that
make a positive difference in peoples' lives. Forest Laboratories'
growing product line includes Lexapro(R) (escitalopram oxalate), an
SSRI indicated for adults for the initial and maintenance treatment
of major depressive disorder and for generalized anxiety disorder;
Namenda(R) (memantine HCl), an N-methyl- D-aspartate
(NMDA)-receptor antagonist indicated for the treatment of moderate
to severe Alzheimer's disease; Benicar(R)* (olmesartan medoxomil),
an angiotensin receptor blocker, and Benicar* HCT(R) (olmesartan
medoxomil- hydrochlorothiazide), an angiotensin receptor blocker
and diuretic combination product, each indicated for the treatment
of hypertension; and Campral(R)* (acamprosate calcium), indicated
in combination with psychosocial support for the maintenance of
abstinence from alcohol in patients with alcohol dependence who are
abstinent at treatment initiation. *Benicar is a registered
trademark of Daiichi Sankyo, and Campral is a registered trademark
of Merck Sante s.a.s., subsidiary of Merck KGaA, Darmstadt,
Germany. Except for the historical information contained herein,
this release contains "forward-looking statements" within the
meaning of the Private Securities Reform Act of 1995. These
statements involve a number of risks and uncertainties, including
the difficulty of predicting FDA approvals, acceptance and demand
for new pharmaceutical products, the impact of competitive products
and pricing, the timely development and launch of new products and
the risk factors listed from time to time in the Company's SEC
reports, including the Company's Annual Report on Form 10-K for the
fiscal year ended March 31, 2006. FOREST LABORATORIES, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) THREE
MONTHS ENDED JUNE 30 (In thousands, except per share amounts) 2006
2005 Revenues: Net sales $758,768 $674,653 Contract revenue 42,662
26,269 Other income 14,908 10,844 Net revenues 816,338 711,766
Costs and expenses: Cost of goods sold 175,685 158,846 Selling,
general and administrative 244,383 268,473 Research and development
139,082 56,393 559,150 483,712 Income before income tax expense
257,188 228,054 Income tax expense 56,581 11,477 Net income
$200,607 $216,577 Net income per common and common equivalent
share: Basic $0.62 $0.63 Diluted $0.62 $0.62 Weighted average
number of common and common equivalent shares outstanding: Basic
321,503 343,107 Diluted 325,915 348,043
http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGODATASOURCE:
Forest Laboratories, Inc. CONTACT: Charles E. Triano, Vice
President - Investor Relations of Forest Laboratories, Inc.,
+1-212-224-6714, Web site: http://www.frx.com/
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