Updates Fiscal 2007 Guidance NEW YORK, Oct. 17
/PRNewswire-FirstCall/ -- Forest Laboratories, Inc. (NYSE:FRX), an
international pharmaceutical manufacturer and marketer, today
announced that fully diluted earnings per share equaled $0.75 in
the second quarter of fiscal 2007, an increase of 27% over last
year's second quarter's fully diluted earnings per share of $0.59.
Reported earnings included a $9.1 million charge for stock option
expense in accordance with the adoption of Statement of Financial
Accounting Standard 123R. (Logo:
http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO ) Net
revenues for the quarter increased 15% to $846,975,000 from
$736,472,000 in the year-ago period. Net revenues were comprised of
net sales, which increased 13% to $778,676,000 from $691,633,000 in
the prior year. Sales in the quarter included $522,662,000 for
Lexapro(R) (escitalopram oxalate), our SSRI for the treatment of
depression and anxiety in adults, an increase of 12% from the
year-ago period. Namenda(R), our NMDA receptor antagonist for the
treatment of moderate and severe Alzheimer's disease, recorded
sales of $155,586,000 during the quarter, growth of 26% from last
year. Also included in net revenues was other income of $68,299,000
which includes $48,315,000 in earnings contribution from the
Benicar(R)* (olmesartan medoxomil) co-promotion agreement, an
increase of 55%. The remaining component of other income was
principally interest income. Net income in the current quarter
increased 18% to $241,111,000 from $204,884,000 reported in the
second quarter of the prior year. Selling, general and
administrative expenses increased 2% to $259,008,000. Research and
development expenses increased 43% to $93,752,000 during the
quarter. Fully diluted shares outstanding at September 30, 2006
were 322,581,000 a reduction of 23 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 7.2 million shares leaving an additional
16 million shares available for repurchase under the existing
program, which has no expiration date. Six Month Results Revenues
for the six months ended September 30, 2006 increased 15% to
$1,663,313,000 from $1,448,238,000 in the prior year. Net income
for the six months ended September 30, 2006 increased 5% to
$441,718,000 from net income of $421,461,000 reported in the six
months of the prior year. Diluted earnings per share increased 12%
to $1.36 in the current year's first six months as compared to
diluted earnings per share of $1.21 in last year's six months. The
year-ago six-month earnings per share reflect a one-time tax
benefit of $36.4 million, or $0.10 per share, related to the
repatriation of foreign funds under the American Jobs Creation Act
of 2004. Excluding the one-time tax benefit, year-ago fully diluted
earnings per share were $1.11. Fiscal 2007 Guidance Based on the
stronger-than-projected performance of our promoted products,
accretion from shares repurchased fiscal year-to-date, and shifting
approximately $43 million in planned product milestone payments
into next fiscal year, the Company has increased its expectations
for fully diluted earning per share for the fiscal year ending
March 31, 2007 to $2.60-$2.65 from prior guidance of $2.45-$2.50
per share. The earnings per share guidance does not include the
potential impact from additional share repurchases which may be
made under the Company's remaining authorization of 16 million
shares. Howard Solomon, Chairman and Chief Executive Officer of
Forest, commented: "We are very pleased with the continued strong
performance of our key marketed products: Lexapro, Namenda and
Benicar. Given this performance as well as accretion from our
significant share repurchases, Forest is now projecting a level of
annual earnings per share that meaningfully exceeds our prior
record level achieved in fiscal 2005, the last year of Celexa's
exclusivity. At the same time the Company is also significantly
increasing its investment in research and development. This
investment will support the continued development of current
pipeline products as well as allow the Company to continue to
expand the product pipeline. The ultimate goal and key focus of the
Company is to successfully license, develop and commercialize a
next generation of Forest products that will ultimately more than
replace profits from today's key products which lose exclusivity in
the early part of the next decade." 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 October 31, 2006 at both
websites and also by dialing 1-800-642-1687 (US investors) or
+1-706-645-9291 (international investors) passcode 8085488. 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
and 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 and on Form 10-Q for the period
ended June 30, 2006. FOREST LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) THREE MONTHS SIX
MONTHS ENDED SEPTEMBER 30 ENDED SEPTEMBER 30 (In thousands, except
per share amounts) 2006 2005 2006 2005 Revenues: Net sales $778,676
$691,633 $1,537,444 $1,366,286 Contract revenue 48,909 32,303
91,571 58,572 Other income 19,390 12,536 34,298 23,380 Net revenues
846,975 736,472 1,663,313 1,448,238 Costs and expenses: Cost of
goods sold 185,098 158,415 360,783 317,261 Selling, general and
administrative 259,008 253,237 503,391 521,710 Research and
development 93,752 65,473 232,834 121,866 537,858 477,125 1,097,008
960,837 Income before income tax expense 309,117 259,347 566,305
487,401 Income tax expense 68,006 54,463 124,587 65,940 Net income
$241,111 $204,884 $441,718 $421,461 Net income per share: Basic
$0.76 $0.60 $1.38 $1.23 Diluted $0.75 $0.59 $1.36 $1.21 Weighted
average number of shares outstanding: Basic 317,809 340,531 319,623
341,808 Diluted 322,581 345,815 324,256 346,883
http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO
http://photoarchive.ap.org/ DATASOURCE: 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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