Forest Labs Trims 2010 Outlook On Higher R&D Costs

NEW YORK (AP) — Drugmaker Forest Laboratories Inc. trimmed its fiscal 2010 profit forecast on Tuesday, pointing to greater research and development spending.

The company now expects a profit of $3.40 to $3.50 per share, down from a previous forecast of $3.45 to $3.55 per share. The new estimate excludes expected one-time charges of 24 cents per share.

Forest maintained its revenue outlook of $4.1 billion.

Analysts expect the company to earn $3.52 per share for the fiscal year ending in March, with $4.11 billion in revenue.

In August, Forest acquired the U.S. rights to Nycomed's chronic lung disease drug candidate Daxas. The new guidance includes spending to develop and start selling the drug. Forest now expects to spend $610 million on research and development this fiscal year, up from a prior estimate of $575 million.

Forest's adjusted fiscal second quarter profit fell a penny short of Wall Street estimates, while its sales were slightly better than expected.

Shares of Forest Labs slipped 40 cents to $29.85 in morning trading.