Forest Laboratories, Inc. (NYSE:FRX), an international
pharmaceutical manufacturer and marketer, today announced that
earnings per share for the first quarter of fiscal 2010 were $0.87.
Reported earnings per share in the first quarter of fiscal 2009
were $0.79 and included a one-time pre-tax charge of $44.1 million,
or $.08 per share net of tax, related to the termination of the
Azor® co-promotion agreement with Daiichi Sankyo.
Net revenues for the quarter, which includes net sales, contract
revenue, interest and other income, were $1,008.2 million, an
increase of 4.3% from $966.8 million in the year-ago period.
Net sales for the quarter increased 6.1% to $948.2 million from
$893.7 million in the year-ago period. Sales of Lexapro®
(escitalopram oxalate), an SSRI for the treatment of depression in
adults and adolescents and generalized anxiety disorder in adults
were $565.5 million, a decline of 3.0% from the year-ago period.
Sales of Namenda®, an NMDA receptor antagonist for the treatment of
moderate and severe Alzheimer’s disease totaled $259.3 million
during the quarter, an increase of 18.6% from last year’s first
quarter. Sales of Bystolic®, a beta-blocker for the treatment of
hypertension, were $37.7 million. Bystolic was launched in January
2008, and sales in last year’s fiscal first quarter were $4.4
million. The Company’s newest product, Savella™, a selective
serotonin norepinephrine dual reuptake inhibitor (SNRI) for the
management of fibromyalgia, which was launched in late April 2009,
recorded sales of $9.6 million. Contract revenue declined 11.9% to
$47.7 million, principally due to lower Benicar® (olmesartan
medoxomil) co-promotion income of $44.7 million, a decrease of
14.6% compared to last year’s first quarter. Per the agreement with
Daiichi Sankyo, active co-promotion of Benicar ended in the first
quarter of fiscal 2009 and the Company now receives a gradually
reducing residual royalty until the end of March 2014. Interest
income of $12.2 million decreased from $18.2 million reported in
the year-ago period, due to lower interest rates earned on the
Company’s short duration portfolio.
Selling, general and administrative expense decreased 9.1% to
$311.8 million primarily due to the Azor termination payment
recorded in the first quarter last year. Excluding the Azor impact,
SG&A increased 4.3% and reflects the level of effort required
to support our currently marketed products, particularly our most
recently launched products, Bystolic and Savella. Research and
development spending increased 31.2% to $147.1 million compared to
the year-ago period and reflects the level of spending required to
advance our current pipeline of development products.
Income tax expense for the quarter was $69.6 million, reflecting
a quarterly effective tax rate of 20.9%. Reported net income for
the quarter ended June 30, 2009 was $262.9 million compared to
$242.9 million reported for last year’s first quarter.
Diluted shares outstanding at June 30, 2009 were 303,393,000, a
reduction of approximately 4.9 million shares compared to the
year-ago period due mainly to the Company’s share repurchase
program. There were no share repurchases during the current
quarter.
Howard Solomon, Chairman and Chief Executive Officer of Forest,
said: “We are very pleased with the solid financial results that
the Company reported for the quarter and with the excellent
performance of our newest products Bystolic and Savella. Bystolic
continued its strong sales performance for the quarter and the
recent launch of Savella has been very satisfactory. We just
recently were able to report positive Phase III clinical results
for ceftaroline in the treatment of community acquired bacterial
pneumonia (CABP). These results along with the previously announced
positive Phase III study results for ceftaroline in the treatment
of complicated skin and skin structure infections (cSSSI), will
serve as the basis for our New Drug Application, which we expect to
submit to the FDA around the end of calendar 2009.
“In addition, this quarter we filed a sNDA for Bystolic for the
indication of congestive heart failure (CHF). We recently initiated
Phase III studies of linaclotide for the treatment of constipation
predominant irritable bowel syndrome (IBS-C). Phase III studies of
linaclotide for chronic constipation (CC) are already underway.
Importantly, we continue to identify and evaluate numerous business
development opportunities and we expect to further advance and
expand our development pipeline throughout this 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 www.frx.com
and also on the website 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
August 4, 2009 at both websites and also by dialing (800) 642-1687
(US or Canada) or +1 706 645-9291 (International). Conference ID:
13756094.
About Forest
Laboratories
Forest Laboratories (NYSE:FRX) is a U.S.-based pharmaceutical
company with a long track record of building partnerships and
developing and marketing products that make a positive difference
in people’s lives. In addition to its well-established franchises
in therapeutic areas of the central nervous and cardiovascular
systems, Forest’s current pipeline includes product candidates in
all stages of development and across a wide range of therapeutic
areas. The Company is headquartered in New York, NY. To learn more
about Forest Laboratories, visit www.FRX.com.
Except for the historical information contained herein, this
release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These
statements involve a number of risks and uncertainties, including
the difficulty of predicting FDA approvals, the 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 Forest
Laboratories' Annual Reports on Form 10-K, Quarterly Reports on
Form 10-Q, and any subsequent SEC filings.
FOREST LABORATORIES, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOME(Unaudited)
(In thousands, except per share
amounts)
Three Months EndedJune
30,
2009 2008
Revenues: Net sales
$
948,242
$
893,745
Contract revenue 47,709 54,153 Interest income 12,200 18,230 Other
income
716
Net revenues 1,008,151
966,844 Costs and
expenses:
Cost of goods sold
216,744 197,340 Selling, general and administrative 311,807 342,955
Research and development
147,126
112,112 675,677
652,407 Income before income
tax expense 332,474 314,437 Income tax expense
69,576 71,517
Net income $ 262,898 $ 242,920
Net
income per share: Basic
$
0.87
$ 0.79 Diluted $ 0.87 $ 0.79
Weighted average number of shares outstanding: Basic
302,958 307,493 Diluted 303,393
308,329
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