Earnings Preview : Forest Laboratories Inc. (NYSE: FRX) Second Quarter 2011
Tuesday, October 05, 2021 5:12 PM

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Forest Laboratories Inc. (NYSE: FRX) is scheduled to release fiscal second-quarter earnings before the opening bell on Tuesday, October 19, 2010. Analysts, on average, expect the company to report earnings of 93 cents per share on revenue of $1.07 billion. In the year-ago quarter, the company reported earnings of 85 cents per share on revenue of $1.06 billion.

Forest Laboratories, Inc. develops, manufactures, and sells branded and generic forms of ethical drug products. Its principal products include Lexapro to treat depression; Namenda to treat Alzheimer's disease; Bystolic, beta-blocker to treat hypertension; and Savella for the treatment of fibromyalgia.

In the preceding fiscal first-quarter, the New York-based company's net income was $117.48 million, or 39 cents per share, compared to $262.90 million, or 87 cents per share, in the year-ago quarter. On an adjusted basis, the company earned 95 cents per share in the first quarter. Revenue grew to $1.07 billion from $1.01 billion in the same quarter last year. Analysts, on average, expected the company to report earnings of 86 cents per share on revenue of $1.06 billion.

The company boosted its fiscal 2011 outlook at its last earnings call in July. Forest Labs now anticipates earnings in the range of $3.67 to $3.77 per share, excluding the charges in the current quarter of $0.56 per share and including the impact of an accelerated share repurchase transaction. Previously, the company expected earnings in a range of $3.50 per share to $3.60 per share.

Forest Laboratories is trying hard to come up with new drugs that can help replace lost revenue when its antidepressant drug Lexapro goes off patent in March 2012.  The drug generated $2.3 billion in revenue last year. Similarly, the company's Alzheimer's drug Namenda faces patent expiration in April 2015. According to IMS Health, Namenda had U.S. sales of $1.2 billion for the twelve months ended March 31, 2010. The President and COO of Forest Labs, Larry Olanoff, said in July that there are currently six phase III products in the company's pipeline. Of the six pipeline products, two are under FDA review, that's Daxas and Ceftaroline; two are planned to be filed during 2011, that's Aclidinium and Linaclotide; and two more are expected to be filed in 2012, that is Cariprazine and Levomilnacipran.

Early in September, the pharmaceutical company announced that the U.S. Food and Drug Administration's Anti-Infective Drugs Advisory Committee voted 21 - 0 in favor of approval of ceftaroline fosamil for the treatment of pneumonia and voted 18 - 0 in favor of approval for skin and skin structure infections. The company expects to hear from the FDA about approval in the first quarter of next year.

The company also recently responded to a Food and Drug Administration request for more information on the developing lung disease treatment Daxas. In April, a panel of FDA lung experts voted 10-5 against approving Daxas, known chemically as roflumilast, because of concerns about potentially dangerous. In May, the FDA asked for more information on the drug.

Meanwhile, Forest Laboratories Inc. (NYSE: FRX) and its partner Ironwood Pharmaceuticals Inc. (NASDAQ: IRWD) last month announced that the investigational drug, linaclotide, has met all four primary efficacy endpoints in the first of two Phase 3 clinical trials in patients with irritable bowel syndrome with constipation.

Among other developments, the company recently agreed to plead guilty and pay more than $313 million to settle charges for distributing unapproved drug and illegaly promoting an anti-depressant drug for use in treating children.

In terms of stock performance, Forest Labs shares have lost nearly 3% since the beginning of the year.

Disclosure: Author doesn't own any of the stocks discussed here.



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