Nerves Frayed at Forest
He doubts there will be a settlement, "considering that Forest had such a good case." Goodman's report was issued before Forest said on Tuesday that it was suing Caraco Pharmaceutical Laboratories, (CPD) for infringing on Lexapro's patent.
Although analysts are fixated on the Lexapro litigation, Goodman says Forest, which specializes in licensing drugs, has some pipeline prospects that could raise its prospects in the next 12 months.
He is "modestly optimistic" about nebivolol, an experimental blood-pressure medication licensed in January from Mylan Laboratories (MYL) for sale in the U.S. and Canada. He figures the drug could carve out a niche in a very crowded market for hypertension, while a significant gain would come if the drug could be approved for congestive heart failure.
Forest expects to seek approval from the Food and Drug Administration for nebivolol as a treatment for heart failure, but Goodman worries that the agency will demand more clinical trials. He isn't sure Forest will want to spend the time and money.Mylan received the FDA's conditional approval for nebivolol as a blood-pressure treatment in May 2005, saying more tests would be needed before the drug could be cleared. That led Forest to suggest the drug could be approved in mid to late 2007. Goodman also is "fairly bullish" on an experimental antibiotic, Orapem, that Forest licensed in February from Replidyne (RDYN), a Louisville, Colo., company that just went public. Replidyne asked the FDA in December to approve the drug for treating several diseases, including acute bacterial sinusitis and certain skin infections in adults. The FDA is expected to comment in October.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV