NEW YORK, July 22 /PRNewswire-FirstCall/ -- Forest Laboratories, Inc.
(NYSE: FRX), an international pharmaceutical manufacturer and marketer,
today announced that fully diluted earnings per share equaled $0.79 in the
first quarter of fiscal 2009. Reported earnings per share include a
one-time pre- tax charge of $44,100,000, or $0.08 per share net of tax,
related to the previously announced termination of the AZOR(TM) (amlodipine
and olmesartan medoxomil) co-promotion agreement with Daiichi Sankyo.
Reported earnings per share in the June 2007 quarter were $0.83.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001011/FORESTLOGO )
Revenues for the quarter increased 4.2% to $966,844,000 from
$928,274,000 in the year-ago period.
Revenues were comprised of net sales, which increased 6.1% to
$893,745,000 from $842,616,000 in the prior year. Sales in the quarter
included $583,097,000 for Lexapro(R) (escitalopram oxalate), our SSRI for
the treatment of depression and anxiety in adults, an increase of 5.6% from
last year. Namenda(R), our NMDA receptor antagonist for the treatment of
moderate and severe Alzheimer's disease, recorded sales of $218,618,000
during the quarter, growth of 14.0% from last year. The Company's newest
product, Bystolic(TM) a novel beta-blocker for the treatment of
hypertension, which was launched in late January 2008, had sales of
$4,374,000. Also included in revenues was other income of $73,099,000 which
includes contract revenue of $52,383,000 from the Benicar(R) (olmesartan
medoxomil) co-promotion agreement, which was essentially flat compared to
last year. The remaining component of other income was principally interest
income, which totaled $18,230,000.
Net income in the current quarter was $242,920,000 a decrease of 9.4%
from $268,162,000 in the first quarter of the prior fiscal year. Selling,
general and administrative expense increased 31.2% to $342,955,000 and
included the one-time charge of $44,100,000 related to the termination of
the AZOR co- promotion agreement with Daiichi Sankyo. Research and
development spending decreased 18.1% to $112,112,000 compared to the
year-ago period, which included product milestone development expenses
totaling approximately $28,500,000. There were no milestone expenses in the
current period.
Fully diluted shares outstanding at June 30, 2008 were 307,912,000, a
reduction of approximately 14 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 6.6 million
shares leaving an additional 9.2 million shares available for repurchase
under the existing program, which has no expiration date.
Fiscal 2009 Guidance
The Company now expects that reported fully diluted earnings per share
for the fiscal year ending March 31, 2009 will be in the range of $3.10 to
$3.20, including the one-time charge related to the termination of the AZOR
co- promotion agreement. Excluding the effect of the AZOR charge, the
Company expects adjusted fully diluted earnings per share to be in the
range of $3.20 to $3.30.
Howard Solomon, Chairman and Chief Executive Officer of Forest, said:
"We are pleased with the financial performance of the Company reported this
quarter, striking the balance between delivering a meaningful level of
earnings per share and continuing to support and advancing a very
significant product pipeline while also supporting our currently marketed
products including the recently launched product, Bystolic. Our late stage
pipeline has two compounds under regulatory review at the FDA: milnacipran
for the treatment of fibromyalgia and Lexapro for the additional indication
in the treatment of adolescent depression. In addition, during the quarter
the Company reported positive results from two globally conducted,
multi-center Phase III studies of ceftaroline, a broad-spectrum
cephalosporin with activity against gram-positive bacteria, such as MRSA
and gram-negative bacteria, for the treatment of complicated skin and skin
structure infections. Enrollment continues for ceftaroline in two Phase III
studies for community acquired pneumonia and we anticipate those results in
2009."
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 August 5, 2008 at both websites and also by dialing (800)
642- 1687 (US or Canada) or +1 706 645-9291 (International). Conference ID:
54360430.
About Forest Laboratories and Its Products
Forest Laboratories (NYSE: FRX) is a U.S.-based pharmaceutical company
with a long track record of building partnerships and developing and
delivering products that make a positive difference in people's lives. In
addition to its well-established franchises in therapeutic areas of the
central nervous and cardiovascular systems, Forest's current pipeline
includes product candidates in all stages of development and across a wide
range of therapeutic areas. The Company is headquartered in New York, NY.
To learn more about Forest Laboratories, visit http://www.FRX.com.
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
Forest Laboratories' Annual Report on Form 10-K, Quarterly Reports on Form
10-Q, and any subsequent SEC filings.
Contact: Frank Perier, Jr.
Senior Vice President - Finance and Chief Financial Officer
Forest Laboratories, Inc.
909 Third Avenue
New York, New York 10022
212-224-6611
Frank.Perier@frx.com
FOREST LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
THREE MONTHS ENDED
JUNE 30,
(In thousands,
except per share amounts)
2008 2007
Revenues:
Net sales $893,745 $842,616
Contract revenue 54,153 53,377
Interest income 18,230 26,738
Other income 716 5,543
966,844 928,274
Costs and expenses:
Cost of goods sold 197,340 186,240
Selling, general and administrative 342,955 261,328
Research and development 112,112 136,908
652,407 584,476
Income before income tax expense 314,437 343,798
Income tax expense 71,517 75,636
Net income $242,920 $268,162
Net income per share:
Basic $0.79 $0.84
Diluted $0.79 $0.83
Weighted average number of shares outstanding:
Basic 307,043 319,580
Diluted 307,912 321,921
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:
Frank Perier, Jr., Senior Vice President -
Finance and Chief Financial Officer, Forest Laboratories, Inc.,
+1-212-224-6611, Frank.Perier@frx.com
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