DOW JONES NEWSWIRES
Forest Laboratories Inc.'s (FRX) fiscal first-quarter profit
rose a better-than-expected 8.2% as sales of its Namenda treatment
for Alzheimer's disease and dementia jumped, more than offsetting a
drop in sales of its star depression fighter, Lexapro.
Like other smaller drug makers, Forest Labs' efforts to boost
its pipeline through acquisitions have been challenged by the tight
credit markets. It also has been seeing slowing sales of Lexapro,
which the company sells for Denmark's H. Lundbeck A/S (HLUKY) in
the U.S., and accounts for about 60% of Forest Labs' revenue.
For the period ended June 30, Forest Labs reported earnings of
$262.9 million, or 87 cents a share, up from $242.9 million, or 79
cents a share, a year earlier. The latest quarter included an
8-cent charge tied to the termination of a copromotion pact with
Daiichi Sankyo Ltd. (4568.TO).
Revenue rose 4.3% to $1.01 billion.
Analysts surveyed by Thomson Reuters expected earnings,
excluding items, of 82 cents a share on revenue of $1.01
billion.
Lexapro sales fell 3% while Namenda, the company's other star
drug, climbed 19%. Savella, a fibromyalgia treatment introduced by
Forest Labs and Cypress Bioscience Inc. (CYPB) in the spring, had
sales of $9.6 million. The product competes with Pfizer Inc.'s
(PFE) Lyrica.
Shares of Forest Labs closed Monday at $25.40 and were inactive
premarket.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com