("Forest Laboratories 1Q Profit Doubles On Fewer Charges,
Costs," at 8:30 a.m. EDT, misstated the financial period in the
headline and first paragraph. The correct version follows:)
Forest Laboratories Inc.'s (FRX) fiscal first-quarter earnings
more than doubled on fewer charges and lower expenses.
Like many drug makers, Forest Labs has sought to partner with
drug developers to bolster its pipeline. Patent protection for its
main money maker, the depression treatment Lexapro, expires in
March 2012. The company acquired Clinical Data Inc. in April for
$1.2 billion in a bet that the antidepressant Viibryd can help
offset the looming loss of patent protection for Lexapro and its
No. 2 drug, Namenda, which treats Alzheimer's and dementia.
Sales of Lexapro have slowed in the past year amid competition
but rose 3.6% in the quarter to $585.7 million while Namenda sales
increased 3.9% to $319.9 million.
For the quarter ended June 30, Forest Labs reported a profit of
$258.1 million, or 90 cents a share, up from $117.5 million, or 39
cents a share, a year earlier. Excluding items, earnings rose to
$1.04 from 95 cents. The most-recent quarter included a 14-cent
charge on a licensing payment to Blue Ash for azimilide, while the
year-earlier quarter included charges related to Department of
Justice investigations and a licensing payment to TransTech for
glucose-lowering agents.
Revenue jumped 8% to $1.15 billion. Analysts polled by Thomson
Reuters had most recently forecast earnings of 97 cents on revenue
of $1.13 billion.
The company's costs and expenses fell 10% to $806.3 million
Shares closed Monday at $37.95 and were inactive premarket. The
stock has risen 34% over the past year.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283;
melodie.warner@dowjones.com