Forest Laboratories, Inc. Completes $2.9B Acquisition of Aptalis
February 03 2014 - 8:30AM
Business Wire
Deal Expands GI Franchise in U.S. and
Canada; Complements Growing CF Business in Europe
Combined Company Begins Operations Today;
Poised for Future Growth
Forest Laboratories, Inc. (NYSE:FRX), a leading, fully
integrated, specialty pharmaceutical company, today announced the
completion of its acquisition of Aptalis, a privately held
specialty pharmaceutical company focused on gastrointestinal
disorders and cystic fibrosis. The companies will begin combined
operations today, with Aptalis operating as a subsidiary of Forest
Laboratories, Inc.
The acquisition of Aptalis strengthens Forest’s gastrointestinal
franchise in the U.S. and Canada, complements its growing cystic
fibrosis business in Europe, and creates a cystic fibrosis business
in the U.S. market. Forest expects the acquisition to add
approximately $700 million in revenue and about $0.78 per share to
the Company’s non-GAAP EPS in FY2015. The acquisition also adds
assets to Forest’s pipeline in both therapeutic areas.
Post-acquisition integration activities will begin today. As
previously announced, Forest anticipates $125 million in cost
synergies by fiscal year 2016.
“With the completion of the acquisition, Forest is
well-positioned to continue driving sales growth while realizing
cost savings. The acquisition also fits our strategy of building
blockbuster line calls to achieve economies of scale and make us
more relevant to our customers,” said Brent Saunders, Chief
Executive Officer and President of Forest. “Today marks a new
opportunity to draw on the strengths and talents of both companies
and emerge as a stronger Forest that is well-equipped to deliver on
its promise of bringing meaningful medicines to patients in our key
therapeutic areas.”
Forest used a combination of cash on hand and proceeds from the
recent $1.8 billion bond offering to fund the $2.9 billion
transaction.
About Forest Laboratories and Its Products
Forest Laboratories (NYSE: FRX) is a leading, fully integrated,
specialty pharmaceutical company largely focused on the United
States market. The Company markets a portfolio of branded drug
products and develops new medicines to treat patients suffering
from diseases principally in the following therapeutic areas:
central nervous system, cardiovascular, gastrointestinal,
respiratory, anti-infective, and cystic fibrosis. Our strategy of
acquiring product rights for development and commercialization
through licensing, collaborative partnerships, and targeted mergers
and acquisitions allows us to take advantage of attractive
late-stage development and commercial opportunities, thereby
managing the risks inherent in drug development. The Company is
headquartered in New York, NY. To learn more, visit
www.FRX.com.
About Aptalis
Aptalis is a subsidiary of Forest Laboratories, Inc. focused on
gastrointestinal disorders and cystic fibrosis. Aptalis was
acquired by Forest in January 2014. Key Aptalis products include
CANASA®, CARAFATE®, PYLERA®, RECTIV®, and ZENPEP®. Aptalis’s
Pharmaceutical Technologies business offers oral drug delivery
platforms that provide advantages over existing formulations.
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 Report on Form 10-K, Quarterly
Reports on Form 10-Q and any subsequent SEC filings. Forest assumes
no obligation to update forward-looking statements contained in
this release to reflect new information or future events or
developments.
Forest Laboratories, Inc.Frank J. MurdoloVice President,
Investor Relations1-212-224-6714media.relations@frx.comorAmanda
KaufmanSenior Manager, Corporate Communications and Media
Relationsamanda.kaufman@frx.com
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