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Forest Laboratories, Inc. Reports Q3\'09 Diluted Earnings Per Share of $0.62, Including $0.41 Per Share Charge for New Product Licensing Fees
February 2nd, 2009
2009 FEB 2 -- Forest Laboratories, Inc. (NYSE:FRX), a U.S. based pharmaceutical company, announced that reported diluted earnings per share equaled $0.62 in the third quarter of fiscal year 2009. Reported earnings per share include charges for new product licensing fees of $150,000,000, or $0.41 per share net of tax, related to the previously announced product collaboration agreements with Phenomix Corporation (Phenomix) for dutogliptin for the treatment of diabetes and Pierre Fabre Medicament (Pierre Fabre) for F2695 for the treatment of depression. Reported diluted earnings per share in the third quarter of fiscal 2008 were $0.96. Excluding the net of tax impact of the two licensing charges, diluted net income per share for the current quarter was $1.03.
Revenues for the quarter were $997,955,000, compared with $998,242,000 in the year-ago period. Revenues were comprised of net sales of $920,013,000, versus $918,146,000 in the year-ago period. Sales in the quarter included $585,473,000 of Lexapro(R) (escitalopram oxalate), an SSRI indicated for the initial and maintenance treatment of major depressive disorder and generalized anxiety disorder in adults. Lexapro sales declined 3.0% from the year-ago period primarily resulting from a decrease in market share in the anti-depressant market. Sales of Namenda(R), an NMDA receptor antagonist for the treatment of moderate and severe Alzheimer's disease, totaled $240,851,000 in the quarter, growth of 10.1% from reported sales of $218,734,000 in last year's third quarter. The Company's newest product, Bystolic(TM), a beta-blocker for the treatment of hypertension, which was launched in late January 2008, had sales of $20,961,000. Also included in revenues was other income of $77,942,000 which includes contract revenue of $47,283,000 from the co-promotion of Benicar(R) (olmesartan medoxomil), a decline of 8.6% compared to last year. Per the agreement with Daiichi Sankyo, active co-promotion of the product ended in the first quarter of fiscal 2009 and the Company now receives a residual royalty. The remaining component of other income was principally interest income, which totaled $24,235,000.
Net income in the current quarter was $187,975,000 as compared to $301,757,000 reported in the third quarter of the prior fiscal year. Selling, general and administrative expense increased 1.5% to $289,968,000 and includes significant investment spending to support the launch of Bystolic as well as pre-launch activities for Savella(TM). Research and development spending for the current quarter was $279,051,000 as compared to $108,246,000 reported in the third quarter of the prior fiscal year. Spending in the quarter includes combined licensing fee payments of $150,000,000 to Phenomix and Pierre Fabre in connection with product collaboration agreements.
Diluted shares outstanding for the third quarter were 302,056,000, a reduction of 11,051,000 shares from last year due mainly to the Company's share repurchase program.
Keywords: Forest Laboratories, Inc., Depression, Mental Health, Anxiety Disorder, Alzheimer Disease, Diabetes, Major Depressive Disorder, Marketing and Licensing Agreements, Escitalopram Oxalate, Pharmaceuticals, Drugs, Therapy, Treatment, Lexapro, Memantine Hydrochloride, Namenda, Antidepressant, Serotonin Uptake Inhibitor
This article was prepared by Pain & Central Nervous System Week editors from staff and other reports. Copyright 2009, Pain & Central Nervous System Week via NewsRx.com.
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