Forest Laboratories, Inc. (FRX) Q4 Profit Falls On Lexapro Patent Expiry

Forest Laboratories, Inc. (FRX) Q4 Profit Falls On Lexapro Patent Expiry

Forest Laboratories, Inc. (NYSE:FRX) reported today diluted earnings per share of $0.17 for the fourth quarter of fiscal 2013, compared to $0.72 in the fourth quarter of fiscal 2012.  Non-GAAP earnings per share, excluding acquisition related amortization, for the fourth fiscal quarter came at $0.25 as compared with $0.77 in the fourth quarter of fiscal 2012.

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Forest Laboratories, Inc. (FRX) Q4 Profit Falls On Lexapro Patent Expiry

The net sales for the international pharmaceutical manufacturer and marketer fell by 21.4 percent to $783.2 million, from $996.9 million in the prior year quarter. The fall in sales was mainly due to the loss of patent exclusivity on March 14, 2012 for Lexapro(R) (escitalopram oxalate), however, the sales were partially compensated by the company’s next generation products. The net income for the quarter ended March 31, 2013 stood at $45.4 million or $0.17 per share against 192.7 million or $0.72 per share in the last year’s fourth quarter.

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Contract revenue for the quarter came in at $30.6 million compared to $46.8 million last year.  Forest Laboratories, Inc. (NYSE:FRX) cost of sales increased to 22.7 percent against 21.8 percent in the last year’s fourth quarter. Selling, General and Administrative expense for the quarter totaled $372.7 million against $410.5 million in the year-ago quarter. The company increased its spending on Research and Development in the quarter to $240.3 million compared with $213.9 million in last year’s fourth quarter.

Howard Solomon, Chairman and Chief Executive Officer of Forest Laboratories, Inc. (NYSE:FRX), said: “Fiscal year 2013 was an important transition year for our company following the loss of patent exclusivity for Lexapro in March 2012.”

For the twelve months ended March 31, 2013, revenues fell 31.8 percent to $3.1 billion from $4.6 billion in the prior year.  For twelve months, the pharma company posted a net loss per share of $0.12 compared to earnings per share of $3.57. Non-GAAP EPS for fiscal year 2013, excluding acquisition related amortization and certain upfront licensing payments, stood at $0.45 as compared with $3.88 for fiscal year 2012.

For the year ending March 31, 2014, the company expects earnings per share to be in the range of $0.40 to $0.60, including acquisition related amortization and other charges. Excluding the charges, non-GAAP earnings per share are estimated in between $0.80 to $1.00.

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