NEW YORK, Jan. 15 /PRNewswire-FirstCall/ -- Forest Laboratories, Inc.
(NYSE: FRX), a U.S.-based pharmaceutical company, today announced that
fully diluted earnings per share equaled $0.96 in the third quarter of
fiscal 2008, an increase of 23% over last year's third quarter's fully
diluted earnings per share of $0.78.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO )
Revenues for the quarter increased 12% to $998,242,000 from
$893,031,000 in the year-ago period. Revenues were comprised of net sales
of $918,146,000, an increase of 11% from $830,431,000 in the year-ago
period, earnings contribution of $51,753,000 from the co-promotion of
Benicar(R)* (olmesartan medoxomil) and Benicar HCT(R), antihypertensive
therapies, which increased 34% from $38,664,000 in the year-ago quarter,
interest income of $25,862,000 which increased 15% from $22,577,000 in the
year-ago period and other contract and miscellaneous income of $2,481,000.
Sales in the quarter included $603,454,000 of Lexapro(R) (escitalopram
oxalate), an SSRI indicated for the initial and maintenance treatment of
major depressive disorder and generalized anxiety disorder in adults. This
represents growth of 11% from the year-ago period. Sales of Namenda(R), an
NMDA receptor antagonist for the treatment of moderate and severe
Alzheimer's disease, totaled $218,735,000 in the quarter, growth of 26%
from reported sales of $173,881,000 in last year's third quarter. Product
wholesalers collectively held more inventory of both Lexapro and Namenda at
the end of the December quarter which positively impacted sales of these
products by approximately $23,000,000 for Lexapro and $5,000,000 for
Namenda. Wholesaler inventory levels for both products are currently at
approximately two weeks of sales.
Selling, general and administrative expenses increased 6% to
$285,652,000. Research and development spending decreased 3% to
$108,246,000 during the quarter. The year ago-period research and
development spending included milestone payments of approximately
$20,000,000 compared to milestone payments of approximately $5,000,000 in
the just reported quarter.
Net income in the current quarter increased by 21% to $301,757,000 as
compared to $250,301,000 reported in the third quarter of the prior year.
Fully diluted shares outstanding for the third quarter were
313,107,000, a reduction of 7,256,000 shares from last year due mainly to
the Company's share repurchase program. During the quarter the Company
purchased 2,124,800 shares under its current 35 million share authorization
and has an additional 15,810,200 shares available for repurchase under the
program, which has no expiration date.
Nine-month results
Revenue for the nine months ended December 31, 2007 increased 11% to
$2,845,476,000 from $2,556,344,000 in the prior year.
Net income for the nine months ended December 31, 2007 increased 15% to
$795,163,000 from net income of $692,019,000 reported in the nine months of
the prior year. Diluted reported earnings per share increased 17% to $2.51
in the current year's first nine months as compared to diluted earnings per
share of $2.14 for last year's nine months.
Fiscal 2008 Guidance
Based on the stronger-than-projected performance of our promoted
products, the Company has increased its expectations for fully diluted
earnings per share for the fiscal year ending March 31, 2008 to $3.35-$3.45
from prior guidance of $3.10-$3.20 per share. The revised guidance excludes
the impact of the one-time licensing payment, equal to $0.15 per share,
made to Microbia in the fiscal second quarter for development and marketing
rights to linaclotide.
Howard Solomon, Chairman and Chief Executive Officer of Forest, said:
"We are pleased with both the performance of our currently marketed drugs
as well as the achievements reported for our product pipeline during the
just completed quarter. Namenda sales exceeded $200 million for the first
time, while Lexapro also generated record sales and income from the
Benicar(R) co-promotion remained strong. During the quarter we also
commenced the launch of Azor(TM), a fixed dose combination of Benicar and
amlodipine for the treatment of hypertension with our partner Daiichi
Sankyo. Forest will complete its co-promotion period for Benicar at the end
of the coming quarter and will continue to receive a portion of the
product's profit for an additional six years ending in April 2014. Forest
will reallocate the portion of its salesforce that had been supporting
Benicar to our two most recent product launches: Azor and Bystolic(TM), a
beta blocker for the treatment of hypertension, which received Food and
Drug Administration marketing approval on December 17, 2007.
Regarding our development pipeline, we submitted a new drug application
for milnacipran for the treatment of fibromyalgia. In addition, we reported
positive data from a 316 patient Phase III trial for Lexapro in the
treatment of adolescent depression patients aged 12-18 and intend to file a
supplemental new drug application to expand the product's label. This
clinical data is particularly important given that depression is a
significant problem in this age group and also due to the current attention
being given to the use of antidepressants as treatment for this population.
We also reported supportive proof of concept data for RGH-188 for the
treatment of schizophrenia. As our pipeline continues to expand, we expect
to report clinical trial results for several late-stage products during the
remainder of the calendar year and also expect that we will enter into
development agreements for additional compounds. The Company will continue
to allocate appropriate resources to advance and expand the development
pipeline in order to ultimately more than replace sales and earnings from
currently marketed products that will decline following expiration of their
marketing exclusivity."
Forest will host a conference call at 10:00 AM EST today to discuss the
results. The conference call will be webcast live beginning at 10:00 AM EST
on the Company's website at http://www.frx.com and also on the website
http://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 January 31, 2008 at both websites and also by dialing
1-800-642-1687 (US investors) or +1-706-645-9291 (international investors)
passcode 30069630.
About Forest Laboratories and Its Products
Forest Laboratories (http://www.frx.com) is a US-based pharmaceutical company
dedicated to identifying, developing and delivering products that make a
positive difference in peoples' lives. Forest Laboratories' growing product
line includes Lexapro(R) (escitalopram oxalate), an SSRI indicated for
adults for the initial and maintenance treatment of major depressive
disorder and generalized anxiety disorder; Namenda(R) (memantine HCl), an
N-methyl D-aspartate (NMDA)-receptor antagonist indicated for the treatment
of moderate to severe Alzheimer's disease; and Campral(R)* (acamprosate
calcium), indicated in combination with psychosocial support for the
maintenance of abstinence from alcohol in patients with alcohol dependence
who are abstinent at treatment initiation. In addition to our growing
product line, Forest also co-promotes the Daiichi Sankyo, Inc. products
Benicar(R)* (olmesartan medoxomil), an angiotensin receptor blocker,
Benicar HCT(R)* (olmesartan medoxomil-hydrochlorothiazide), an angiotensin
receptor blocker and diuretic combination product, and AZOR(TM)*
(amlodipine and olmesartan medoxomil) a calcium channel blocker and
angiotensin receptor blocker combination product, all indicated for the
treatment of hypertension.
*Azor is a trademark of Daiichi Sankyo, Inc.; Benicar and Benicar HCT are
registered trademarks of Daiichi Sankyo, Inc.; and Campral is a
registered trademark of Merck Sante s.a.s., subsidiary of Merck KGaA,
Darmstadt, Germany.
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
each of Forest Laboratories' Annual Reports on Form 10-K, Quarterly Reports
on Form 10-Q, and any subsequent SEC filings.
FOREST LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
THREE MONTHS NINE MONTHS
ENDED DECEMBER 31 ENDED DECEMBER 31
(In thousands, except per share amounts)
2007 2006 2007 2006
Revenues:
Net sales $918,146 $830,431 $2,603,099 $2,367,875
Contract revenue 52,705 38,914 156,395 130,485
Interest income 25,862 22,577 77,532 56,330
Other income 1,529 1,109 8,450 1,654
Net revenues 998,242 893,031 2,845,476 2,556,344
Costs and expenses:
Cost of goods sold 213,506 195,539 589,738 556,322
Selling, general
and administrative 285,652 268,626 827,419 772,017
Research and
development 108,246 112,029 415,892 344,863
607,404 576,194 1,833,049 1,673,202
Income before income
tax expense 390,838 316,837 1,012,427 883,142
Income tax expense 89,081 66,536 217,264 191,123
Net income $301,757 $250,301 $795,163 $692,019
Net income per share:
Basic $0.97 $0.79 $2.52 $2.17
Diluted $0.96 $0.78 $2.51 $2.14
Weighted average number
of shares outstanding:
Basic 312,140 316,200 315,729 318,512
Diluted 313,107 320,363 317,279 323,048
SOURCE Forest Laboratories, Inc.
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Related links:
http://www.frx.com
http://www.streetevents.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Charles E. Triano, Vice President - Investor
Relations of Forest Laboratories, Inc., +1-212-224-6714,
charles.triano@frx.com
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