Forest Laboratories, Inc. (NYSE:
FRX) is scheduled to report their results after the market closes on April 19, 2010. For fiscal 2010, the company expects diluted earnings per share will in the range of $3.45 to $3.55, including planned research and development milestones payments related to existing pipeline products, but not including any licensing or milestone payments. The company projects an overall increase in the prescription volume for the SSRI/SNRI antidepressant market by 1.5% and a decrease in Lexapro's prescription volume by 1.5 share points.
Other projections include,
1) a growth in sales of Namenda by nearly 12% compared to fiscal 2009,
2) increase in Bystolic sales by approximately 182% compared to the previous year,
3) Savella sales of approximately $30.0 million and
4) Benicar earnings decline of approximately 5% from $195.6 million reported in fiscal 2009.
Forest Laboratories, Inc. and its subsidiaries develop, manufacture and sell both branded and generic forms of ethical drug products which require a physician''s prescription, as well as non-prescription pharmaceuticalproducts sold over-the-counter. Forest''s most important United Statesproducts consist of branded ethical drug specialties marketed directly, or to physicians by the company''s Forest Pharmaceuticals, Forest Therapeutics and Forest Specialty Sales salesforces.
Fiscal 2009 was a year of solid performance for Forest Laboratories mainly attributable to two important marketing approvals from the FDA. Savella was approved for the management of fibromyalgia, following a first cycle review and Lexapro received approval for the important additional indication for the acute and maintenance treatment of major depressive disorder in adolescents. The company also partnered with Phenomix Corporation to develop and commercialize dutogliptin, for the treatment of Type 2 diabetes mellitus and with Pierre Fabre Medicament to develop and commercialize levomilnacipran for the treatment of depression.
Analysts' estimates for fiscal 2010 range from a low of $3.45 to a high of $3.82, compared to a consensus estimate of $3.53, with number of estimates being 28 and the co-efficient variance 2.29. As for quarterly number, Q4 2010 estimates range from a low of $0.76 to a high of $0.93, compared to a consensus estimate of $0.84, with number of estimates being 26 and the co-efficient variance 5.65. Continuous product development throughout fiscal 2010 is bound to yield improved earnings. The company is expecting to enter into additional development agreements for product opportunity compounds during this and subsequent years and support their currently marketed products and seek additional compounds through their business development efforts to deliver the sales and earnings necessary to both replace and exceed the revenues lost due to the expiry of marketing exclusivity for Lexapro and Namenda.
The stock closed at $30.52, up 0.12% on April 6, 2010 and most analysts recommend a strong hold on the stock with the price target set to reach $33 due to multiple potential pipeline stock drivers, including Daxas (COPD), ceftaroline (antibiotic), and linaclotide (irritable bowel syndrome). In addition, external transactions could help the stock.
