NEW YORK, Oct. 16 /PRNewswire-FirstCall/ -- Forest Laboratories,
Inc. (NYSE:FRX), an international pharmaceutical manufacturer and
marketer, today announced that fully diluted reported earnings per
share equaled $0.71 in the second quarter of fiscal 2008, a
decrease of 5% over last year's second quarter's fully diluted
reported earnings per share of $0.75. Reported earnings per share
were reduced by the effect of a $70 million licensing charge,
equivalent to $0.15 per share net of tax, to Microbia, Inc. for the
right to co-develop and co-market linaclotide, a compound being
investigated for chronic constipation and constipation predominant
irritable bowel syndrome. (Logo:
http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO ) Revenues
for the quarter increased 8.5% to $918,960,000 from $846,975,000 in
the year-ago period. Revenues were comprised of net sales, which
increased 8.2% to $842,337,000 from $778,676,000 in the prior year.
Sales in the quarter included $559,063,000 for Lexapro(R)
(escitalopram oxalate), our SSRI for the treatment of depression
and anxiety in adults, an increase of 7% from the year-ago period.
Namenda(R), our NMDA receptor antagonist for the treatment of
moderate and severe Alzheimer's disease, recorded sales of
$192,872,000 during the quarter, growth of 24% from last year.
Product wholesalers collectively held less inventory of both
Lexapro and Namenda at the end of the September quarter which
negatively impacted combined sales of these products by
approximately $18,000,000. Wholesaler inventory levels for both
products are currently at approximately two weeks of sales. Also
included in net revenues was other income of $76,623,000 which
includes a 2.6% increase to $49,572,000 in earnings contribution
from the Benicar(R)* (olmesartan medoxomil) co- promotion
agreement. The remaining component of other income was principally
interest income. Net income in the current quarter decreased 7% to
$225,244,000 from $241,111,000 reported in the second quarter of
the prior year. Selling, general and administrative expenses
increased 8% to $280,439,000. Research and development expenses
increased 82% to $170,738,000 during the quarter which included the
$70,000,000 licensing charge made in connection with the Microbia
agreement. Fully diluted shares outstanding at September 30, 2007
were 316,852,000 a reduction of 5.7 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 4.95 million shares leaving an additional
17.9 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, 2007 increased 11.1% to
$1,847,234,000 from $1,663,313,000 in the prior year. Net income
for the six months ended September 30, 2007 increased 12% to
$493,406,000 from net income of $441,718,000 reported in the six
months of the prior year. Reported diluted earnings per share
increased 13% to $1.54 in the current year's first six months as
compared to diluted earnings per share of $1.36 in last year's six
months. Fiscal 2008 Guidance The Company now projects that earnings
per share for the fiscal year ending March 31, 2008 will be in a
range of $3.10 to $3.20 as compared to prior guidance of a range of
$3.05 to $3.15. This guidance excludes the $70 million, equal to
$0.15 per share net of tax, licensing charge made in connection
with the Microbia agreement, as it was not included in the prior
guidance. Research and development spending is expected to be
approximately $530 million excluding the $70 million licensing
charge. Howard Solomon, Chairman and Chief Executive Officer of
Forest, commented: "During the quarter we concluded arrangements
with our co-partner Daiichi Sankyo for the launch of Azor(TM),
which is occurring this month. In addition, we expect nebivolol to
be approved this quarter with a launch scheduled for the fiscal
fourth quarter. Both products, with income benefits extending
beyond 2012, should soon begin to contribute to earnings. We also
expect to file the new drug application for milnacipran this
quarter. In addition to the new product launches our core product
sales continue to grow and our development pipeline has also
advanced. In addition to the results we just announced for RGH-188
for schizophrenia, we expect to see clinical data on five
additional later stage studies during the coming year. During the
quarter we announced a collaboration with Microbia for the co-
development and co-marketing of linaclotide, for chronic
constipation and constipation predominant irritable bowel syndrome.
We believe this is a promising novel compound that may offer a much
needed therapy for this very large and underserved market.
Linaclotide, which has already concluded small Phase II studies, is
presently being studied in larger Phase II studies with results
expected during the first half of 2008." 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, 2007 at
both websites and also by dialing 1-800- 642-1687 (US investors) or
+1-706-645-9291 (international investors) passcode 19769552. 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 and on Form 10-Q for the period
ended June 30, 2007. 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) 2007 2006 2007 2006 Revenues: Net sales $842,337
$778,676 $1,684,953 $1,537,444 Contract revenue 50,313 48,909
103,690 91,571 Interest income 24,932 19,100 51,670 33,753 Other
income 1,378 290 6,921 545 Net revenues 918,960 846,975 1,847,234
1,663,313 Costs and expenses: Cost of goods sold 189,992 185,098
376,232 360,783 Selling, general and administrative 280,439 259,008
541,767 503,391 Research and development 170,738 93,752 307,646
232,834 641,169 537,858 1,225,645 1,097,008 Income before income
tax expense 277,791 309,117 621,589 566,305 Income tax expense
52,547 68,006 128,183 124,587 Net income $225,244 $241,111 $493,406
$441,718 Net income per share: Basic $0.71 $0.76 $1.55 $1.38
Diluted $0.71 $0.75 $1.54 $1.36 Weighted average number of shares
outstanding: Basic 315,510 317,809 317,534 319,623 Diluted 316,852
322,581 319,375 324,256
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 or Web site:
http://www.frx.com/
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