NEW YORK, July 17 /PRNewswire-FirstCall/ -- Forest Laboratories, Inc.
(NYSE: FRX), an international pharmaceutical manufacturer and marketer,
today announced that fully diluted earnings per share equaled $0.83 in the
first quarter of fiscal 2008. Reported earnings included an $8.9 million
(after tax) charge for stock option expense in accordance with Statement of
Financial Accounting Standard 123R. Reported earnings per share in the June
2006 quarter were $0.62.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO )
Revenues for the quarter increased 14% to $928,274,000 from
$816,338,000 in the year-ago period.
Net revenues were comprised of net sales, which increased 11% to
$842,616,000 from $758,768,000 in the prior year. Sales in the quarter
included $552,313,000 for Lexapro(R) (escitalopram oxalate), our SSRI for
the treatment of depression and anxiety in adults, an increase of 9% from
last year. Namenda(R), our NMDA receptor antagonist for the treatment of
moderate and severe Alzheimer's disease, recorded sales of $191,719,000
during the quarter, growth of 27% from last year. Also included in net
revenues was other income of $85,658,000 which includes contract revenue of
$52,543,000 from the Benicar(R)* (olmesartan medoxomil) co-promotion
agreement, an increase of 26%. The remaining component of other income was
principally interest income, which totaled $26,738,000.
Net income in the current quarter increased 34% to $268,162,000 from
$200,607,000 in the first quarter of the prior fiscal year. Selling,
general and administrative expense increased 7% to $261,328,000. Research
and development spending decreased 2% to $136,908,000 compared to the
year-ago period and included product milestone development expenses
totaling approximately $28,500,000 made to three different partner
companies. In the year-ago period, research and development spending
included an upfront payment of $60,000,000 to Almirall for the U.S. rights
to aclidinium (LAS34273), a compound being investigated for the treatment
of chronic obstructive pulmonary disease.
Fully diluted shares outstanding at June 30, 2007 were 321,921,000, a
reduction of approximately 4 million shares compared to the year-ago period
due mainly to the Company's share repurchase program. During the just-
completed quarter, the Company repurchased approximately 1.8 million shares
leaving an additional 12.9 million shares available for repurchase under
the existing program, which has no expiration date.
Fiscal 2008 Guidance
The Company continues to expect that reported fully diluted earnings
per share for the fiscal year ending March 31, 2008 will be in a range of
$3.05 to $3.15. Included in this projection is the expectation by the
Company that selling, general and administrative expenses will grow
somewhat more than originally planned due to the earlier than planned
timing of a new drug application (NDA) for milnacipran for the treatment of
fibromyalgia based on positive phase three study results. Also factored
into the guidance is the Company's small reduction in projected product
milestone payments due to DIAS-2 clinical study results for desmoteplase in
the treatment of acute ischemic stroke not achieving the pre-defined
endpoint. The Company has also increased its projected tax rate for the
fiscal year to 22% from 21% based on the mix of revenues and expenses
allocated to its key tax jurisdictions: the U.S. and Ireland. This increase
is also factored into the Company's projected earnings per share guidance
of $3.05 to $3.15.
Howard Solomon, Chairman and Chief Executive Officer of Forest, said:
"We are pleased with the financial performance of the Company reported this
quarter which continues our meaningful level of earnings per share growth
as well as development spending in support of a significant number of
ongoing product development initiatives. During the quarter the Company
reported positive results from a phase three clinical study examining
milnacipran in the treatment of fibromyalgia and also reported that results
for desmoteplase in the treatment of acute ischemic stroke did not meet the
predefined endpoint."
Mr. Solomon continued: "We currently have a new drug application under
FDA review for nebivolol, a new generation beta blocker, for the indication
of hypertension. Nebivolol has already received an approvable letter from
the FDA and we expect the FDA to complete its review of that new drug
application by the end of the calendar year. In addition, Forest currently
has four compounds in phase three studies either currently enrolling
patients or having completed patient enrollment. We also intend to submit a
new drug application for milnacipran for fibromyalgia based upon the
recently completed phase three study and an earlier phase three study. We
also expect to receive results from a Phase II proof of concept study for
RGH-188, an atypical antipsychotic, in the treatment of schizophrenia later
this year.
We continue to allocate a significant level of resources to support our
active business development programs. We are considered a desirable U.S.
development and marketing partner by companies around the world and
therefore we currently have many development opportunities in all stages of
review or negotiation. I would expect that Forest will be in a position to
solidify some of these opportunities during the remainder of the fiscal
year."
Forest will host a conference call at 10:00 AM EDT today to discuss the
results. The conference call will be webcast live beginning at 10:00 AM EDT
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 July 31, 2007 at both websites and also by dialing (800)
642-1687 (US or Canada) or +1 706 645-9291 (International). Conference ID:
6328788.
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 for 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; Benicar(R)*
(olmesartan medoxomil), an angiotensin receptor blocker, and Benicar*
HCT(R) (olmesartan medoxomil- hydrochlorothiazide), an angiotensin receptor
blocker and diuretic combination product, each indicated for the treatment
of hypertension; 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.
*Benicar is a registered trademark of Daiichi Sankyo, 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 Reform Act of 1995. These statements involve a number of risks
and uncertainties, including 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 the Company's SEC
reports, including the Company's Annual Report on Form 10-K for the fiscal
year ended March 31, 2007.
FOREST LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
THREE MONTHS
ENDED JUNE 30,
(In thousands, except
per share amounts)
2007 2006
Revenues:
Net sales $842,616 $758,768
Contract revenue 53,377 42,662
Interest income 26,738 14,653
Other income 5,543 255
Net revenues 928,274 816,338
Costs and expenses:
Cost of goods sold 186,240 175,685
Selling, general and administrative 261,328 244,383
Research and development 136,908 139,082
584,476 559,150
Income before income tax expense 343,798 257,188
Income tax expense 75,636 56,581
Net income $268,162 $200,607
Net income per common and
common equivalent share:
Basic $0.84 $0.62
Diluted $0.83 $0.62
Weighted average number of common and
common equivalent shares outstanding:
Basic 319,580 321,503
Diluted 321,921 325,915
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, Forest Laboratories, Inc., +1-212-224-6714
charles.triano@frx.com
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