DOW JONES NEWSWIRES
Forest Laboratories Inc. (FRX) acquired the high-blood pressure
drug Bystolic from Johnson & Johnson's (JNJ) Janssen
Pharmaceutica NV for a one-time cash payment of $357 million,
eliminating all future royalties.
The companies agreed to terminate the licenses in Canada for
both Bystolic and the fibromyalgia drug Savella. Forest has
established a Canadian subsidiary, which will take over the
registration and commercialization of both products.
Last month, Forest and Janssen sued several drug makers over
plans to market generic versions of Forest's Bystolic hypertension
drug, citing an existing patent. Forest's patent on the
hypertension medication expires in December 2021 after patent-term
extension.
Like many drug makers, Forest Labs is looking to bolster its
pipeline as the patent protection on its main money maker, the
depression treatment Lexapro, expired in March and its No. 2 drug,
the Alzheimer's and dementia treatment Namenda, loses exclusivity
in 2015. The company in January reported its fiscal third-quarter
earnings fell 13% as marketing costs soared, though revenue jumped
7.4%.
Shares closed Friday at $34.69 and were inactive premarket. The
stock is up 15% so far this year.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283;
melodie.warner@dowjones.com