Forest Laboratories Filed Investor Presentation
July 27 2012 - 7:30AM
Business Wire
Forest Laboratories, Inc. (NYSE: FRX) (“Forest”) announced that
it has filed a presentation with the Securities and Exchange
Commission (“SEC”) in connection with its Annual Meeting of
Shareholders to be held on August 15, 2012. The presentation was
posted to www.FRX2012annualmeeting.com and the SEC’s website,
www.sec.gov, on July 26, 2012.
The presentation filed yesterday outlines important facts for
shareholders to consider in connection with the upcoming director
elections at the Annual Meeting, such as:
- Forest projects $6 billion in annual
revenues by fiscal year 2018. The Company expects that this revenue
growth, combined with substantial operating leverage, will enable
the Company to generate pre-tax margins of approximately 28% by
fiscal year 2018.
- Forest has consistently exceeded its
annual revenue and earnings guidance. Seven of ten sell-side
analysts project that Forest’s revenue in fiscal year 2018 will
exceed fiscal year 2012 levels; Forest generally achieves or
exceeds analyst expectations for product revenue.
- The Company creates significant
operating leverage by cross-promoting multiple products to primary
care physicians (PCPs), who are an increasingly important part of
the healthcare landscape due to recently passed federal
legislation. Forest’s deep franchises in therapeutic areas commonly
treated by PCPs create additional operating leverage.
- Forest’s data-driven, targeted
marketing approach drives sales force productivity. The Company’s
product growth prospects, operating leverage and increased
productivity drive expanding margins on products. Forest’s SG&A
expenditure is appropriate for a company with multiple recently
launched products and the business model generates higher sales per
employee versus peers.
- Forest’s share price performed better
than its peer group in the three years prior to the loss of
exclusivity of Lexapro; in fact, sell side analysts’ median share
price target has increased 21.3% in the last two years. We believe
that the Company’s premium P/E multiple demonstrates investor
confidence in future earnings potential, management and the Board
of Directors.
- Forest has a demonstrated extensive
commercial expertise, a track record for investing capital in
successful products and a commitment to delivering value to
shareholders. The Company’s use of capital in acquisitions has been
validated by a progression of successfully launched products. Over
the last 20 years, Forest has generated total shareholder return of
775% and returned $5.1 billion of capital to shareholders through
share repurchases.
- Bereft of any real, concrete ideas,
Icahn offers only vague promises to “evaluate” this and “review”
that. In contrast, Forest has a real plan to deliver value.
Forest urges shareholders to vote the WHITE card they have
received from Forest and to vote “FOR ALL” 10 of Forest’s nominees
to its Board of Directors. Shareholders can vote by telephone,
Internet or by signing, dating and returning the Company’s WHITE
proxy card. Forest urges shareholders NOT to sign any proxy card
sent to them by the Icahn Group. Even a withhold vote for Icahn’s
nominees on Mr. Icahn’s gold proxy card will cancel any previous
proxy submitted by shareholders that voted “FOR ALL” the Company’s
nominees.
Forward-Looking Information
Except for the historical information contained herein, this
document 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 Report on Form 10-K, Quarterly Reports on Form
10-Q and any subsequent SEC filings.
Important Additional Information
Forest Laboratories, its directors, director nominees and
certain of its executive officers may be deemed to be participants
in the solicitation of proxies from Forest shareholders in
connection with the matters to be considered at Forest
Laboratories’ 2012 Annual Meeting. Forest Laboratories has filed
its definitive proxy statement (as it may be amended, the “Proxy
Statement”) with the U.S. Securities and Exchange Commission (the
“SEC”) in connection with such solicitation of proxies from Forest
shareholders. FOREST SHAREHOLDERS ARE STRONGLY ENCOURAGED TO READ
THE PROXY STATEMENT AND ACCOMPANYING PROXY CARD AS THEY CONTAIN
IMPORTANT INFORMATION. Information regarding the ownership of
Forest's directors and executive officers in Forest stock,
restricted stock and options is included in their SEC filings on
Forms 3, 4 and 5, which can be found at the Company's website
(www.frx.com) in the section "Investors." More detailed information
regarding the identity of potential participants, and their direct
or indirect interests, by security holdings or otherwise, is set
forth in the Proxy Statement and other materials to be filed with
the SEC in connection with Forest Laboratories' 2012 Annual
Meeting. Information can also be found in Forest's Annual Report on
Form 10-K for the year ended March 31, 2012, filed with the SEC on
May 25, 2012. Shareholders can obtain the Proxy Statement, any
amendments or supplements to the Proxy Statement and other
documents filed by Forest Laboratories with the SEC for no charge
at the SEC's website at www.sec.gov. Copies are also available at
no charge at Forest Laboratories' website at www.frx.com or by
writing to Forest Laboratories at 909 Third Avenue, New York, New
York 10022.
If you have any questions, require
assistance with voting your WHITE proxy card,or need additional
copies of the proxy materials, please contact:
MacKenzie Partners, Inc.
105 Madison Avenue
New York, NY 10016
frxproxy@mackenziepartners.com
(212) 929-5500 (Call Collect)
Or
TOLL-FREE (800) 322-2885
About Forest Laboratories
Forest Laboratories' (NYSE: FRX) longstanding global
partnerships and track record developing and marketing
pharmaceutical products in the United States have yielded its
well-established central nervous system and cardiovascular
franchises and innovations in anti-infective, respiratory,
gastrointestinal and pain management medicine. Forest’s pipeline,
the most robust in its history, includes product candidates in all
stages of development across a wide range of therapeutic areas. The
Company is headquartered in New York, NY. To learn more, visit
www.FRX.com.
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