NEW YORK, Feb. 15 /PRNewswire-FirstCall/ -- Forest Laboratories, Inc.
(NYSE: FRX) announced today that following the completion of two recently
announced in-licensing transactions during the quarter, it has revised its
guidance for research and development spending for the fiscal year ending
March 31, 2006. As previously announced, Forest made an upfront payment of
$75 million to Mylan Laboratories Inc. under an agreement for the
commercialization, development and distribution of Mylan's novel beta blocker
nebivolol in the United States and Canada. Forest also made an upfront
payment of $50 million to Replidyne, Inc. under the previously announced
agreement for the commercialization, development and distribution of
Replidyne's new oral antibiotic, faropenem medoxomil, in the United States.
The Company will expense both payments during the current quarter as research
and development since neither product has yet received U.S. Food and Drug
Administration (FDA) approval. This will increase projected research and
development expense from $280 million to $405 million for the fiscal year
ending March 31, 2006 resulting in a corresponding reduction of $0.29 in
earnings per share in the Company's fiscal fourth quarter and fiscal year
ending March 31, 2006. The Company has not updated any other component of its
previously issued guidance.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO )
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. Because these statements involve a
number of risks and uncertainties, actual future results may differ materially
from those expressed or implied by such forward-looking statements. Factors
that could cause or contribute to such differences include, but are not
limited to the difficulty of predicting FDA approvals, 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 both companies' SEC reports, including
their Annual Reports on Form 10-K for the fiscal year ended March 31, 2005 and
Quarterly Reports on Form 10-Q for the periods ended June 30, 2005, September
30, 2005 and December 31, 2005.
SOURCE Forest Laboratories, Inc.
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Related links:
http://www.frx.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO
CONTACT:
Charles E. Triano, Vice President-Investor
Relations of Forest Laboratories, Inc., +1-212-224-6714
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