Forest Laboratories, Inc. Reports Fiscal First Quarter 2008 Earnings Per Share Of $0.83
July 17 2007 - 8:07AM
PR Newswire (US)
NEW YORK, July 17 /PRNewswire-FirstCall/ -- Forest Laboratories,
Inc. (NYSE:FRX), an international pharmaceutical manufacturer and
marketer, today announced that fully diluted earnings per share
equaled $0.83 in the first quarter of fiscal 2008. Reported
earnings included an $8.9 million (after tax) charge for stock
option expense in accordance with Statement of Financial Accounting
Standard 123R. Reported earnings per share in the June 2006 quarter
were $0.62. (Logo:
http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO ) Revenues
for the quarter increased 14% to $928,274,000 from $816,338,000 in
the year-ago period. Net revenues were comprised of net sales,
which increased 11% to $842,616,000 from $758,768,000 in the prior
year. Sales in the quarter included $552,313,000 for Lexapro(R)
(escitalopram oxalate), our SSRI for the treatment of depression
and anxiety in adults, an increase of 9% from last year.
Namenda(R), our NMDA receptor antagonist for the treatment of
moderate and severe Alzheimer's disease, recorded sales of
$191,719,000 during the quarter, growth of 27% from last year. Also
included in net revenues was other income of $85,658,000 which
includes contract revenue of $52,543,000 from the Benicar(R)*
(olmesartan medoxomil) co-promotion agreement, an increase of 26%.
The remaining component of other income was principally interest
income, which totaled $26,738,000. Net income in the current
quarter increased 34% to $268,162,000 from $200,607,000 in the
first quarter of the prior fiscal year. Selling, general and
administrative expense increased 7% to $261,328,000. Research and
development spending decreased 2% to $136,908,000 compared to the
year-ago period and included product milestone development expenses
totaling approximately $28,500,000 made to three different partner
companies. In the year-ago period, research and development
spending included an upfront payment of $60,000,000 to Almirall for
the U.S. rights to aclidinium (LAS34273), a compound being
investigated for the treatment of chronic obstructive pulmonary
disease. Fully diluted shares outstanding at June 30, 2007 were
321,921,000, a reduction of approximately 4 million shares compared
to the year-ago period due mainly to the Company's share repurchase
program. During the just- completed quarter, the Company
repurchased approximately 1.8 million shares leaving an additional
12.9 million shares available for repurchase under the existing
program, which has no expiration date. Fiscal 2008 Guidance The
Company continues to expect that reported fully diluted earnings
per share for the fiscal year ending March 31, 2008 will be in a
range of $3.05 to $3.15. Included in this projection is the
expectation by the Company that selling, general and administrative
expenses will grow somewhat more than originally planned due to the
earlier than planned timing of a new drug application (NDA) for
milnacipran for the treatment of fibromyalgia based on positive
phase three study results. Also factored into the guidance is the
Company's small reduction in projected product milestone payments
due to DIAS-2 clinical study results for desmoteplase in the
treatment of acute ischemic stroke not achieving the pre-defined
endpoint. The Company has also increased its projected tax rate for
the fiscal year to 22% from 21% based on the mix of revenues and
expenses allocated to its key tax jurisdictions: the U.S. and
Ireland. This increase is also factored into the Company's
projected earnings per share guidance of $3.05 to $3.15. Howard
Solomon, Chairman and Chief Executive Officer of Forest, said: "We
are pleased with the financial performance of the Company reported
this quarter which continues our meaningful level of earnings per
share growth as well as development spending in support of a
significant number of ongoing product development initiatives.
During the quarter the Company reported positive results from a
phase three clinical study examining milnacipran in the treatment
of fibromyalgia and also reported that results for desmoteplase in
the treatment of acute ischemic stroke did not meet the predefined
endpoint." Mr. Solomon continued: "We currently have a new drug
application under FDA review for nebivolol, a new generation beta
blocker, for the indication of hypertension. Nebivolol has already
received an approvable letter from the FDA and we expect the FDA to
complete its review of that new drug application by the end of the
calendar year. In addition, Forest currently has four compounds in
phase three studies either currently enrolling patients or having
completed patient enrollment. We also intend to submit a new drug
application for milnacipran for fibromyalgia based upon the
recently completed phase three study and an earlier phase three
study. We also expect to receive results from a Phase II proof of
concept study for RGH-188, an atypical antipsychotic, in the
treatment of schizophrenia later this year. We continue to allocate
a significant level of resources to support our active business
development programs. We are considered a desirable U.S.
development and marketing partner by companies around the world and
therefore we currently have many development opportunities in all
stages of review or negotiation. I would expect that Forest will be
in a position to solidify some of these opportunities during the
remainder of the fiscal year." 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, 2007 at both
websites and also by dialing (800) 642-1687 (US or Canada) or +1
706 645-9291 (International). Conference ID: 6328788. 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, 2007. FOREST LABORATORIES, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) THREE
MONTHS ENDED JUNE 30, (In thousands, except per share amounts) 2007
2006 Revenues: Net sales $842,616 $758,768 Contract revenue 53,377
42,662 Interest income 26,738 14,653 Other income 5,543 255 Net
revenues 928,274 816,338 Costs and expenses: Cost of goods sold
186,240 175,685 Selling, general and administrative 261,328 244,383
Research and development 136,908 139,082 584,476 559,150 Income
before income tax expense 343,798 257,188 Income tax expense 75,636
56,581 Net income $268,162 $200,607 Net income per common and
common equivalent share: Basic $0.84 $0.62 Diluted $0.83 $0.62
Weighted average number of common and common equivalent shares
outstanding: Basic 319,580 321,503 Diluted 321,921 325,915
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,
Forest Laboratories, Inc., +1-212-224-6714 Web site:
http://www.frx.com/ http://www.streetevents.com/
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