Here is an article about the current financial performance of Forest:
"Forest Laboratories Inc.'s /quotes/zigman/226825/quotes/nls/frx FRX +1.82% fiscal first-quarter earnings fell 79% as the pharmaceutical company was hit by sharply lower sales of its antidepressant Lexapro, which masked growth from some of its other drugs.
Forest Labs last month reduced its fiscal-year earnings guidance because of lower-than-expected branded Lexapro sales and more-aggressive pricing for the authorized generic version of the antidepressant following the March loss of the drug's patent exclusivity. In the latest period, Lexapro sales were down 81% at $110 million.
While tougher competition for Lexapro will weigh on the drug maker's earnings this year, the long-term impact on the company is seen as modest if not immaterial, analysts say, as investors have anticipated income from Lexapro will effectively disappear next year.
Chairman and Chief Executive Howard Solomon said Forest has "nine new products that have recently reached or which we expect to reach the marketplace and there are more we have in development and more we are evaluating to replace Lexapro and eventually Namenda when its patent expires."
For the quarter ended June 30, Forest Labs reported a profit of $55.3 million, or 21 cents a share, down from $258.1 million, or 90 cents a share, a year earlier. Excluding acquisition-related charges and other items, earnings were down at 28 cents from $1.07.
Net revenue declined 29% to $821.1 million as net sales slumped 32% to $751.8 million.
Analysts polled by Thomson Reuters most recently projected earnings of 24 cents on revenue of $808.3 million.
Forest is in the midst of a long-running battle with billionaire investor Carl Icahn, the company's second-largest shareholder. The skirmish was revived in June when the activist investor, known for his battles with corporate boardrooms, nominated four candidates to Forest's board and said he was seeking records of the company's actions.
Shareholders are set to vote at Forest's annual meeting Aug. 15. Last August, the drug maker's shareholders rejected Mr. Icahn's effort to place four of his director nominees on the board and elected Forest's entire slate instead.
Shares closed Monday at $35.18 and were inactive premarket. The stock is down by nearly half in the past year. " - from www.marketwatch.com
So how do you improve profits when net sales are down? You lower costs! How do pharmaceutical companies lower costs? The reduce their sales force! Glad I got out when I did!
"Forest Laboratories Inc.'s /quotes/zigman/226825/quotes/nls/frx FRX +1.82% fiscal first-quarter earnings fell 79% as the pharmaceutical company was hit by sharply lower sales of its antidepressant Lexapro, which masked growth from some of its other drugs.
Forest Labs last month reduced its fiscal-year earnings guidance because of lower-than-expected branded Lexapro sales and more-aggressive pricing for the authorized generic version of the antidepressant following the March loss of the drug's patent exclusivity. In the latest period, Lexapro sales were down 81% at $110 million.
While tougher competition for Lexapro will weigh on the drug maker's earnings this year, the long-term impact on the company is seen as modest if not immaterial, analysts say, as investors have anticipated income from Lexapro will effectively disappear next year.
Chairman and Chief Executive Howard Solomon said Forest has "nine new products that have recently reached or which we expect to reach the marketplace and there are more we have in development and more we are evaluating to replace Lexapro and eventually Namenda when its patent expires."
For the quarter ended June 30, Forest Labs reported a profit of $55.3 million, or 21 cents a share, down from $258.1 million, or 90 cents a share, a year earlier. Excluding acquisition-related charges and other items, earnings were down at 28 cents from $1.07.
Net revenue declined 29% to $821.1 million as net sales slumped 32% to $751.8 million.
Analysts polled by Thomson Reuters most recently projected earnings of 24 cents on revenue of $808.3 million.
Forest is in the midst of a long-running battle with billionaire investor Carl Icahn, the company's second-largest shareholder. The skirmish was revived in June when the activist investor, known for his battles with corporate boardrooms, nominated four candidates to Forest's board and said he was seeking records of the company's actions.
Shareholders are set to vote at Forest's annual meeting Aug. 15. Last August, the drug maker's shareholders rejected Mr. Icahn's effort to place four of his director nominees on the board and elected Forest's entire slate instead.
Shares closed Monday at $35.18 and were inactive premarket. The stock is down by nearly half in the past year. " - from www.marketwatch.com
So how do you improve profits when net sales are down? You lower costs! How do pharmaceutical companies lower costs? The reduce their sales force! Glad I got out when I did!