Forest Lab (In a press release) said third- quarter profit rose 21 percent on higher sales of its top- selling drugs, the antidepressant Lexapro (Escitalopram) and Namenda (Memantine hydrochloride) for Alzheimer's disease, products nearing generic competition.
Net income in the fiscal quarter ended Dec. 31 climbed to $301.8 million, or 96 cents a share, from $250.3 million, or 78 cents, a year earlier, the New York-based drugmaker said today in a statement. Earnings beat analysts' estimates, and the company raised its forecast for the year.
Revenue in the quarter rose 12 percent to $998.2 million. The company was expected to bring in $944.1 million, according to the average estimate of 24 analysts surveyed. Research and development spending fell 3 percent to $108.2 million, partly because Forest disbursed less in milestone payments to partners.
``We find it extremely encouraging that Forest can hold down costs and still generate upside to revenue -- demonstrating high profitability and lots of flexibility for future investment in its pipeline,'' said Corey Davis, an analyst at Natixis Bleichroeder in New York, in a note to clients today. He recommends buying Forest shares.
Lexapro sales rose 11 percent to $603.5 million, largely because wholesalers held more inventory at the end of the quarter. Sales of Namenda climbed 26 percent to $218.7 million. Revenue from the blood-pressure drug Benicar, which Forest co- promotes with Japan's Daiichi Sankyo Co., increased 34 percent to $51.8 million.
Higher-than-expected drug sales prompted Forest to boost its forecast for earnings in the fiscal year ending March 31. The company now expects profit in the range of $3.35 to $3.45 a share, excluding 15 cents a share in licensing costs from the second quarter, Forest said today. That's 25 cents higher than the company's Oct. 16 forecast.
The company plans to introduce Bystolic, a new blood- pressure medicine, this month. Forest and partner Cypress BioScience Inc. applied in December to U.S. regulators for approval of the experimental fibromyalgia treatment milnacipran.
Net income in the fiscal quarter ended Dec. 31 climbed to $301.8 million, or 96 cents a share, from $250.3 million, or 78 cents, a year earlier, the New York-based drugmaker said today in a statement. Earnings beat analysts' estimates, and the company raised its forecast for the year.
Revenue in the quarter rose 12 percent to $998.2 million. The company was expected to bring in $944.1 million, according to the average estimate of 24 analysts surveyed. Research and development spending fell 3 percent to $108.2 million, partly because Forest disbursed less in milestone payments to partners.
``We find it extremely encouraging that Forest can hold down costs and still generate upside to revenue -- demonstrating high profitability and lots of flexibility for future investment in its pipeline,'' said Corey Davis, an analyst at Natixis Bleichroeder in New York, in a note to clients today. He recommends buying Forest shares.
Lexapro sales rose 11 percent to $603.5 million, largely because wholesalers held more inventory at the end of the quarter. Sales of Namenda climbed 26 percent to $218.7 million. Revenue from the blood-pressure drug Benicar, which Forest co- promotes with Japan's Daiichi Sankyo Co., increased 34 percent to $51.8 million.
Higher-than-expected drug sales prompted Forest to boost its forecast for earnings in the fiscal year ending March 31. The company now expects profit in the range of $3.35 to $3.45 a share, excluding 15 cents a share in licensing costs from the second quarter, Forest said today. That's 25 cents higher than the company's Oct. 16 forecast.
The company plans to introduce Bystolic, a new blood- pressure medicine, this month. Forest and partner Cypress BioScience Inc. applied in December to U.S. regulators for approval of the experimental fibromyalgia treatment milnacipran.
