Forest Laboratories, Inc. (NYSE:FRX) released its fourth quarter results, beating Wall Street expectations and also providing higher-than-expected guidance for the current quarter. It also announced plans for another key acquisition.

Forest Laboratories, Inc. (FRX) Beats Expectations, Shares Surge

The pharmaceutical company reported GAAP earnings per share of 7 cents and non-GAAP earnings per share of 27 cents. Revenue was reported to be $846.8 million in the December quarter. In the same quarter a year ago, net sales were $678 million.

Analysts had been expecting the company to report earnings per share of 4 cents on revenue of $827.25 million.  As a result, shares of Forest Laboratories climbed as much as 8% in premarket trading after the company released its December quarter results.

Next-generation products drive Forest Laboratories’ results

According to Forest Laboratories, Inc. (NYSE:FRX)’s earnings report this morning, its next-generation products were the main drivers of its strong fourth quarter performance. This segment of the company’s sales alone accounted for $375.4 million—a 59.4% increase sequentially.

The pharmaceutical company noted increases in all of its main products. Sales of Alzheimer’s drug Namenda rose 5.2% year over year. Sales of depression drug Viibryd rose 29.7% year over year. Sales of hypertension drug Bystolic rose 20.1% year over year, while sales of antibiotic Teflaro increased 93.2%.

The company also raised its non-GAAP earnings per share guidance for the fiscal year ending March 31, 2014. It expects to see earnings be between $1.25 and $1.35 per share for the full year.

Forest Laboratories provides other updates

Forest Laboratories, Inc. (NYSE:FRX) also provided more details on some of its more recent developments. It launched Project Rejuvenate, which is a number of strategic steps aimed at cutting costs and streamlining operations, in December. The company said it wants to become “more nimble in responding to a changing environment and to reduce operating expenses by $500 million by the end of fiscal year 2016 compared to the fiscal 2014 cost base.

The company’s board authorized the buyback of up to $1 billion of common stock and issued $1.2 billion in new long-term debt by offering eight-year senior unsecured 5% fixed rate notes. In addition, Forest Laboratories, Inc. (NYSE:FRX) acquired the exclusive rights to schizophrenia and bipolar drug Saphris for $240 million in cash. Those rights were purchased from Merck & Co., Inc. (NYSE:MRK), and the deal closed Jan. 17.

On Jan. 8, Forest Laboratories, Inc. (NYSE:FRX) said it entered into an agreement to acquire the U.S.-based specialty gastrointestinal and cystic fibrosis company Aptalis for $2.9 billion in cash. That deal includes global private investment firm TPG. Currently antitrust officials are reviewing this deal, which Forest believes will add $700 million in sales and be accretive to non-GAAP earnings per share by about 78 cents in the 2015 fiscal year.