NEW YORK, July 18 /PRNewswire-FirstCall/ -- Forest Laboratories, Inc.
(NYSE: FRX), an international pharmaceutical manufacturer and marketer,
today announced that fully diluted earnings per share equaled $0.62 in the
first quarter of fiscal 2007. Reported earnings included a licensing charge
of $60 million and an $8.8 million charge for stock option expense in
accordance with the adoption of Statement of Financial Accounting Standard
123R. Reported earnings per share in the year-ago period were $0.62, which
included a gain of $36.4 million due to a one-time tax reversal related to
the American Jobs Creation Act of 2004.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO )
Net revenues for the quarter increased 15% to $816,338,000 from
$711,766,000 in the year-ago period. Net revenues were comprised of net
sales, which increased 12% to $758,768,000 from $674,653,000 in the prior
year. Sales in the quarter included $507,033,000 for Lexapro(R)
(escitalopram oxalate), our SSRI for the treatment of depression and
anxiety in adults, an increase of 10% from the year-ago period. Namenda(R),
our NMDA receptor antagonist for the treatment of moderate and severe
Alzheimer's disease, recorded sales of $151,082,000 during the quarter,
growth of 32% from last year. Also included in net revenues was other
income of $57,570,000 which includes $41,717,000 in earnings contribution
from the Benicar(R)* (olmesartan medoxomil) co-promotion agreement, an
increase of 72%. The remaining component of other income was principally
interest income.
Net income in the current quarter decreased 7% to $200,607,000 from
$216,577,000 in the first quarter of the prior fiscal year. Excluding the
$36.4 million one-time tax reversal from the year-ago period and the stock
option expense in the current quarter, net income in the current quarter
increased 15%. Selling, general and administrative expense decreased 9% to
$244,383,000. The year-ago selling, general and administrative comparison
included spending on a national sales meeting and two product launches.
Research and development spending increased 147% to $139,082,000. Research
and development spending included a license payment of $60,000,000 to
Almirall for the U.S. rights to LAS34273, a compound being investigated for
the treatment of Chronic Obstructive Pulmonary Disease.
Fully diluted shares outstanding at June 30, 2006 were 325,915,000, a
reduction of 22.1 million shares compared to the year-ago period due mainly
to the Company's ongoing share repurchase program. During the
just-completed quarter, the Company repurchased approximately 1.9 million
shares leaving an additional 23.1 million shares available for repurchase
under the existing program, which has no expiration date.
Fiscal 2007 Guidance
Based on slightly better than expected performance during the
just-completed quarter and projected accretion from the share repurchase
authorization, the Company has increased its projected range for reported
earnings per share for the fiscal year ending March 31, 2007 to $2.45-$2.50
from $2.37-$2.42.
Howard Solomon, Chairman and Chief Executive Officer of Forest, said:
"During the quarter we continued to advance on two important areas in
support of sustaining long-term growth prospects for the Company. Regarding
currently marketed products, our key promoted products all increased their
respective prescription volume and revenue and we saw a continuation of
strong underlying prescription growth in each of these product's underlying
markets.
Also, we continued to make progress with our product pipeline as all of
our current products advanced in the development process. The Company
currently has two new products under FDA review, nebivolol, a beta blocker
for the treatment of hypertension and faropenem, an oral antibiotic for the
treatment of upper respiratory and skin infections, four additional
products in or about to commence Phase III clinical testing, and a number
of other products in stages between pre-clinical and Phase II testing. As
always we continue to evaluate several interesting new product development
opportunities to augment our strengthened product pipeline."
Mr. Solomon added: "We are very pleased with last week's Federal
District Court ruling indicating that the Lexapro patent is valid,
enforceable and infringed by a proposed product. This decision is clearly
consistent with our long held view that the Lexapro patent is a strong
patent."
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, 2006 at both websites and also by dialing (800)
642-1687 (US or Canada) or +1 706 645-9291 (International). Conference ID:
2884693.
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, 2006.
FOREST LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
THREE MONTHS
ENDED JUNE 30
(In thousands, except
per share amounts)
2006 2005
Revenues:
Net sales $758,768 $674,653
Contract revenue 42,662 26,269
Other income 14,908 10,844
Net revenues 816,338 711,766
Costs and expenses:
Cost of goods sold 175,685 158,846
Selling, general and administrative 244,383 268,473
Research and development 139,082 56,393
559,150 483,712
Income before income tax expense 257,188 228,054
Income tax expense 56,581 11,477
Net income $200,607 $216,577
Net income per common and
common equivalent share:
Basic $0.62 $0.63
Diluted $0.62 $0.62
Weighted average number of common and
common equivalent shares outstanding:
Basic 321,503 343,107
Diluted 325,915 348,043
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,
charles.triano@frx.com
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